THE KERALA PUBLIC WORKS ACCOUNT CODE Pages 1-208 PDF

GOVERNMENT OF KERALA
THE
KERALA PUBLIC WORKS
ACCOUNT CODE
(With Appendices)
FIFTH EDITION
2013
(Incorporating Amendments up to 2-5-2012)
Price: `
Official website :www.finance.kerala.gov.in

©
GOVERNMENT OF KERALA
2013
PREFACE TO THE FIRST EDITION
Consequent on the formation of Kerala, the rules governing the procedure relating
to the maintenance of initial accounts and compilation of accounts of officers of the
Public Works Department in vogue in the former Travancore-Cochin area and in the
territories transferred from Madras required unification. While unifying the rules,
care has been taken to incorporate the recent orders on matters relating to procedure
now in force in the Kerala State.
Most of the rules in this Code are account rules issued by the Auditor General
while some are financial rules issued by the State Government. The rules in this
Code supersede the corresponding rules and instructions in force till now on matters
with which this Code deals.
The Kerala Public Works Account Code contains rules which are special to the
Public Works Department and does not reproduce account rules which are applicable
to the P.W.D. in common with other Departments. In all matters in which no special
rule exists in this Code, the general rules will apply.
The forms prescribed in this volume are, included in the ‘Book of Forms’ which
is issued separately.
Any officer who notices any error or omission in this Code should report it to
the Chief Engineer and if the Chief Engineer considers that there is a real error or
omission requiring amendment, he should submit suitable proposals to the Government
in the Public Works Department through the Accountant General. The Public Works
Department will forward such proposals with their remarks to the Finance Department
for necessary action.
P. S. PADMANABHAN,
Finance Secretary.
PREFACE TO THE SECOND EDITION
Consequent on the formation of Kerala, the rules governing the procedure relating
to the maintenance of initial accounts and compilation of accounts of officers of the
Public Works Department in vogue in the former Travancore-Cochin area and in the
territories transferred from Madras required unification. While unifying the rules,
care has been taken to incorporate the recent orders on matters relating to procedure
now in force in the Kerala State.
Most of the rules in this Code are Account Rules issued by the Auditor General
while some are Financial Rules issued by the State Government. The rules in this
Code supersede the corresponding rules and instructions in force till now on matters
with which this Code deals.
Public Works Department and does not reproduce account rules which are applicable
to the P.W.D. in common with other Departments. In all matters in which no special
rule exists in this Code, the general rules will apply.
The forms prescribed in this volume are, included in the ‘Book of Forms’ which
is issued separately.
Any officer who notices any error or omission in this Code should report it to
the Chief Engineer and if the Chief Engineer considers that there is a real error or
omission requiring amendment, he should submit suitable proposals to the Government
in the Public Works Department through the Accountant General. The Public Works
Department will forward such proposals with their remarks to the Finance Department
P. S. PADMANABHAN,
Finance Secretary.
PREFACE TO THE THIRD EDITION
The issue of this revised edition of “The Kerala Public Works Account Code”
has been rendered necessary consequent on the issue of orders by Government
simplifying the Public Works Accounts Procedure on the basis of the
recommendations of the working group constituted by the Government of India.
The important features of the revised simplified pattern of accounts are (1)
The introduction of settlement of inter-divisional transactions by cheque/bank draft
and (2) the changes effected with regard to the procedure of keeping stores and
works accounts.
This opportunity has also been availed of to adopt in this edition the present
arrangement of major and minor heads of accounts. A new chapter on lump sum
contract has also been included in this edition.
The arrangement of the matter in this edition differs from what was adopted
in the previous editions. Three numbers given against each paragraph will indicate
chapter, section and paragraph correspondingly.
The “Book of Forms” has also been suitably revised and issued separately.
The preface to the first edition has been reproduced and the directions contained
therein will continue to apply.
P. VELAYUDHAN NAIR,
Finance Secretary.
PREFACE TO THE FOURTH EDITION
The Kerala Public Works Account Code contains rules which are special to
the Public Works Department. In regard to matters for which there are no special
rules in this Code, the general rules will apply. The Forms prescribed in this volume
are, included in the “Book of Forms” which has been suitably revised and issued
separately.
Any officer who notices any error or omission in this Code should report to
the Chief Engineer and Chief Engineer, may if required, submit suitable proposals
to the Government in the Public Works Department through Accountant General.
Public Works Department will forward such proposals to the Finance Department
M. MOHANKUMAR,
6-12-1991. Commissioner & Secretary
(Finance).
PREFACE TO THE FIFTH EDITION
The Fifth Edition of Kerala Public Works Account Code is being released after
a gap of 22 years. All possible efforts have been made to incorporate the amendments
made to the code during these years. The forms prescribed in this book are included
in the “Book of Forms” which is being issued separately.
Public Works Department. General rules will apply in matters where there are no
special rules in this code.
Any officer who notices an error or omission in this Code should report it to the
Chief Engineer and the Chief Engineer may, if required, submit suitable proposals to
the Government in Public Works Department through the Accountant General. The
Public Works Department, in turn, will furnish such proposals with their remarks to
Finance Department for necessary action.
Thiruvananthapuram DR. V. P. JOY,

17-12-2012 Principal Finance Secretary.
i
TABLE OF CONTENTS
PARAGRAPHS
From To
CHAPTER 1
Extent of application .. 1.1.1 1.1.2
CHAPTER 2
Definitions .. 2.1.1
CHAPTER 3
General outlines of system of accounts
1. Classifications of transactions .. 3.1.1 3.1.9
2. System of accounts .. 3.2.1 3.2.2
CHAPTER 4
Relations with Accountant General
1. General .. 4.1.1 4.1.2
2. Divisional Accountant .. 4.2.1 4.2.15
3. Accountant General’s Inspections .. 4.3.1
4. Communication of sanction to .. 4.4.1 4.4.4
Accountant General
5. Results of audit .. 4.5.1 4.5.7
CHAPTER 5
Appropriations and control of expenditure
1. Introductory .. 5.1.1
2. Grants and their distribution .. 5.2.1 5.2.3
3. Watching of actuals .. 5.3.1 5.3.5

ii
PARAGRAPHS
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CHAPTER 6
Cash
1. Introductory .. 6.1.1 6.1.4
2. Modes of obtaining cash from Treasuries—
(1) General .. 6.2.1 6.2.8
(2) Limits on Divisional and Sub- .. 6.2.9
divisional Officer’s drawings
(3) Cheques .. 6.2.10 6.2.20
3. Receipt of money—
(1) Account procedure .. 6.3.1 6.3.6
(2) Disposal of receipts .. 6.3.7
4. Payments—
(1) Manner of payment .. 6.4.1 6.4.5
(2) Prohibitory orders or injunctions .. 6.4.6
(3) Bills .. 6.4.7
(4) Vouchers .. 6.4.8 6.4.19
5. Remittances to treasuries .. 6.5.1
6. Cash accounts—
(1) Cash book—
(a) Upkeep .. 6.6.1 6.6.2
(b) Balancing .. 6.6.3
(c) Rectification of errors .. 6.6.4
(d) Verification .. 6.6.5 6.6.8
(2) Imprest account .. 6.6.9 6.6.13
(3) Temporary advance account .. 6.6.14
7. Cheque books and receipt books .. 6.7.1 6.7.10
iii
PARAGRAPHS
From To
CHAPTER 7
Stores
1. Introductory .. 7.1.1 7.1.6
2. Stock—
I. General .. 7.2.1 7.2.2
II. Priced vocabulary of stores .. 7.2.3
III. Quantity accounts—
(a) Receipts .. 7.2.4 7.2.8
(b) Issues .. 7.2.9 7.2.11
(c) Bin cards .. 7.2.12 7.2.15
IV. Value accounts—
(a) Payment for stock received .. 7.2.16 7.2.18
(b) Recoveries for stock issued—
(i) Issue rates .. 7.2.19 7.2.21
(ii) Storage charges .. 7.2.22
(iii) Handling charges .. 7.2.23
(iv) Mode of recovery .. 7.2.24
(c) Valuation of quantity accounts .. 7.2.25 7.2.28
(d) Monthly summary of stock .. 7.2.29 7.2.30
receipts and issues
V. Priced stores ledger .. 7.2.31 7.2.33
VI. Adjustment of profit and loss .. 7.2.34
on stock
VII. Stock-taking .. 7.2.35 7.2.37
VIII. Rectification of accounts .. 7.2.38 7.2.41
iv
PARAGRAPHS
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3. Tools and Plant—

I. General .. 7.3.1 7.3.3
II. Numerical accounts—
(a) Receipts .. 7.3.4
(b) Issues .. 7.3.5 7.3.6
(c) Tools and plant ledger .. 7.3.7 7.3.8
(d) Check in Divisional Office .. 7.3.9
III. Payment for supplies .. 7.3.10
IV. Recoveries—
(a) For use of tools and plant .. 7.3.11 7.3.12
(b) For sales and transfers .. 7.3.13 7.3.16
V. Verification .. 7.3.17
VI. Rectification of accounts .. 7.3.18 7.3.19
4. Road metal—
I. Quantity accounts .. 7.4.1 7.4.2
II. Rectification of accounts .. 7.4.3
III. Schedule of rates .. 7.4.4
IV. Charges for quarries .. 7.4.5
5. Materials charged to works .. 7.5.1
CHAPTER 8
Transfer entries .. 8.1.1 8.1.7
CHAPTER 9
Revenue receipts
1. General .. 9.1.1 9.1.9
2. Irrigation revenue collected through .. 9.2.1
Land Revenue Department
v
PARAGRAPHS
From To
3. Rents of buildings and lands—
Demands and recoveries—
(a) From private persons .. 9.3.1
(b) From Government servants and pensioners .. 9.3.2 9.3.14
4. Refunds and remissions .. 9.4.1 9.4.2
5. Accounts procedure—
(1) Register of revenue .. 9.5.1 9.5.3
(2) Register of rents .. 9.5.4 9.5.6
CHAPTER 10
Works accounts
1. General principles .. 10.1.1 10.1.5

2. Cash payments—
I. Introductory .. 10.2.1 10.2.3
II. Payments to labourers—
(a) Departmental labour .. 10.2.4 10.2.7
(b) Labour engaged through a contractor .. 10.2.8
III. Payments to suppliers and contractors—
(A) Record of measurement—
(i) Measurement books .. 10.2.9 10.2.10
(ii) Detailed measurements .. 10.2.11
(iii) Standard measurements .. 10.2.12 10.2.13
(iv) Review of measurements .. 10.2.14
(v) Check measurements of works .. 10.2.15
vi
PARAGRAPHS
From To
(B) Bills and vouchers—
(i) Forms of bills and vouchers .. 10.2.16 10.2.21
(ii) Preparation, examination and payment of bills .. 10.2.22 10.2.31
(C) Aid to contractors .. 10.2.32
(D) Advances to contractors .. 10.2.33
IV. Payments to work-charged establishment
(a) Conditions of employment .. 10.2.34
(b) Pay bills .. 10.2.35 10.2.37
(c) Unpaid wages .. 10.2.38
(d) Travelling expenses .. 10.2.39
(e) Classification of charge .. 10.2.40 10.2.41
3. Issue of materials—
I. General .. 10.3.1 10.3.3
II. Issue to contractors—
(a) General conditions .. 10.3.4 10.3.5
(b) Accounts procedure .. 10.3.6 10.3.9
(c) Return of surplus materials by contractors .. 10.3.10
(d) Tools and plant lent for use .. 10.3.11
III. Issue direct to works—
(a) Detailed accounts of materials issued .. 10.3.12 10.3.13
(b) Disposal of surplus materials .. 10.3.14
(c) Verification of unused balances .. 10.3.15 10.3.19
4. Adjustments .. 10.4.1
5. Works abstracts—
vii
PARAGRAPHS
From To
II. Classification and record of final charges—
(a) Major estimates .. 10.5.4 10.5.12
(b) Minor estimates .. 10.5.13
III. Suspense accounts—
(a) General .. 10.5.14
(b) ‘Materials’ account .. 10.5.15
(c) ‘Purchase’ account .. 10.5.16
(d) ‘Contractors’ and ‘labourers’ accounts .. 10.5.17 10.5.23
IV. Liabilities awaiting incorporation .. 10.5.24 10.5.26
V. Record of progress .. 10.5.27
VI. Preparation, completion and .. 10.5.28 10.5.29
disposal of works abstracts
6. Register of works—
I. Forms of registers of works .. 10.6.1 10.6.2
and their preparation
II. Examination by Divisional Officer .. 10.6.3
III. Closing the Accounts on completion of works—
(a) Settlement of liabilities and assets and .. 10.6.4 10.6.8
clearance of suspense accounts
(b) Closing entries and review of expenditure .. 10.6.9
(c) Excess over estimates—
(i) Excess passed by Divisional Officer .. 10.6.10
(ii) Completion reports and statements .. 10.6.11
IV. Correction of errors after closing accounts .. 10.6.12
V. Schedule of rates .. 10.6.13
viii
PARAGRAPHS
From To
7. Contractors’ ledger—
I. Form and use of the ledger .. 10.7.1 10.7.2
II. Posting the ledger .. 10.7.3 10.7.5
III. Balancing and reconciliation .. 10.7.6 10.7.8
IV. Scrutiny of accounts by contractors .. 10.7.9
8. Sundry rulings—
I. Carriage and incidental charges .. 10.8.1
II. Charges for examination of soil .. 10.8.2
III. Expenditure on inauguration ceremonies .. 10.8.3
IV. Municipal and local rates and taxes on Buildings .. 10.8.4
V. Execution of works by other Departments .. 10.8.5
VI. Execution of Government works by local bodies .. 10.8.6
VII. Government works partly contributed for by
local bodies and private parties .. 10.8.7
VIII. Scope of sanction .. 10.8.8
CHAPTER 11
Lump sum contracts
1. General .. 11.1.1 11.1.2
2. Execution of works through lump sum contracts .. 11.2.1 11.2.7
3. Form of contract .. 11.3.1
4. Payments for work done .. 11.4.1 11.4.4
5. Form of bills .. 11.5.1
6. Subsidiary works accounts .. 11.6.1 11.6.4
7. Contractor’s ledger .. 11.7.1 11.7.2
ix
PARAGRAPHS
From To
CHAPTER 12
Manufacture Accounts
1. Introductory .. 12.1.1 12.1.4
2. Operation charges .. 12.2.1 12.2.3
3. Value of out-turn .. 12.3.1 12.3.3
4. General account .. 12.4.1 12.4.3
CHAPTER 13
Suspense accounts
2. Stock .. 13.2.1 13.2.5
3. Miscellaneous P.W. advances .. 13.3.1 13.3.8
4. Workshop suspense .. 13.4.1 13.4.4
CHAPTER 14
Workshop accounts
1. Introductory .. 14.1.1 14.1.4
2. Direct and indirect charges .. 14.2.1 14.2.6
3. Annual account and review .. 14.3.1 14.3.2
CHAPTER 15
Deposits
2. Security deposits .. 15.2.1 15.2.9
3. Other deposits—
I. For works .. 15.3.1
II. Contractors’ closed accounts .. 15.3.2
III. Sums due to other Governments .. 15.3.3
on closed accounts
IV. Miscellaneous .. 15.3.4
x
PARAGRAPHS
From To
4. Lapsed and confiscated deposits .. 15.4.1 15.4.2
5. Accounts of public works deposits—
I. Deposit register .. 15.5.1
II. Schedule of deposits .. 15.5.2
6. Accounts of interest-bearing securities .. 15.6.1 15.6.2
CHAPTER 16
Non-Government works
1. Introductory .. 16.1.1 16.1.5
2. Deposit works—
I. General .. 16.2.1 16.2.5
II. Local fund works .. 16.2.6
3. Local loan works .. 16.3.1 16.3.4
CHAPTER 17
Transactions with other Divisions
Departments and Governments
1. General Rules .. 17.1.1 17.1.9
2. Accounts procedure .. 17.2.1 17.2.9
CHAPTER 18
Pay and allowances
2. Classification .. 18.2.1 18.2.2
3. Encashment of bills .. 18.3.1
4. Distribution of pay and allowances—
I. General .. 18.4.1 18.4.2
II. Miscellaneous recoveries from establishment .. 18.4.3
xi
PARAGRAPHS
From To
5. Special arrangements to prevent delays in payments .. 18.5.1
6. Communication of sanctions to .. 18.6.1 18.6.3
Accountant General
CHAPTER 19
Contingent charges
1. Modes of obtaining cash .. 19.1.1
2. General Rules .. 19.2.1 19.2.2
3. Special Rules .. 19.3.1 19.3.2
CHAPTER 20
Direction and other Special Offices
1. Introductory .. 20.1.1 20.1.2
2. Receipts .. 20.2.1
3. Payments—
II. Pay and Allowances .. 20.3.3
III. Contingencies .. 20.3.4 20.3.6
CHAPTER 21
Accounts returns of Sub-divisional Officers .. 21.1.1 21.1.6
CHAPTER 22
Accounts of Divisional Officers
1. Introductory .. 22.1.1 22.1.3
2. Scrutiny of accounts .. 22.2.1 22.2.13
3. Settlement of accounts with Treasuries .. 22.3.1 22.3.5
xii
PARAGRAPHS
From To
4. Compilation of accounts—
I. Monthly accounts—
(a) Introductory .. 22.4.1
(b) Schedule dockets .. 22.4.2 22.4.3
(c) Registers and schedules .. 22.4.4 22.4.5
(d) Schedule of works expenditure .. 22.4.6 22.4.7
(e) Schedule of debits to stock .. 22.4.8 22.4.9
(f) Schedule of transactions adjusted under .. 22.4.10
the head, ‘Cash Settlement Suspense
Account’
(g) Classified abstract of expenditure .. 22.4.11
(h) Monthly account .. 22.4.12 22.4.14
(i) Submission to Accountant General .. 22.4.15 22.4.19
II. Review of unsettled accounts .. 22.4.20 22.4.21
III. Closing the accounts of the year .. 22.4.22 22.4.23
IV. Miscellaneous returns .. 22.4.24
V. Corrections in accounts .. 22.4.25 22.4.26
VI. Pro forma accounts .. 22.4.27 22.4.31
VII. Review by Divisional Officer .. 22.4.32
CHAPTER 23
Miscellaneous
1. Transfers of charge—
I. Divisional and Sub-divisional .. 23.1.1
Officers and other Executive Subordinates
II. Divisional Accountants .. 23.1.2 23.1.3
2. Reconstitution of executive charges .. 23.2.1 23.2.2
3. Destruction of records .. 23.3.1
xiii
APPENDICES
PAGE
1. A. The Audit and Accounts Order, 1936 .. 225-227

B. The Initial and Subsidiary Accounts Rules .. 228-229
2. A. Rules for Initial Recruitment and .. 229-234
Training of Divisional Accountants
B. Rules for the Divisional Accountants’ Test Examination .. 234-235
3. List of Major and Minor Heads of Public Works .. 236-267
Receipts and Disbursements
4. Procedure for the Preparation of Budget Estimates, .. 267-283
Distribution of Funds, etc.
5. Procedure for Payments from the Central Road Fund .. 289-295
6. Rules Governing Expenditure on National Highways .. 295-307
7. Notes of Inspection of the Accounts Records of .. 308-317
Sub-divisional Offices
8. Detailed Procedure to be followed by the P.W. Divisional .. 317-323
Officers for the settlement of inter-divisional
transactions by Cheques/Bank drafts
9. Rules for the Accounting and Distribution of Establishment .. 324-331
and Tools and Plant Charges
1
KERALA PUBLIC WORKS ACCOUNT CODE
CHAPTER 1
EXTENT OF APPLICATION
1.1.1. The rules contained in this Code describe primarily the procedure
relating to the initial and compiled accounts of officers of the Public Works
Department. They are supplementary to the general rules in Volume 1 of the
Kerala Financial Code, which are applicable to that department unless there be
something repugnant in the subject or context or except to the extent that they
are modified by the rules in this Code.
1.1.2. With regard to matters dealt with in this Code, the execution of
Central Public Works, entrusted to the agency of State Government will be
regulated, subject to the directions contained in the Account Code, Volume 111
(Central), by rules made by the State Government except where distinct
provisions have been made in the Central Public Works Account Code to the
contrary.
2 DEFINITIONS
CHAPTER –2
DEFINITIONS
2.1.1. Unless there be something repugnant in the subject or

context the terms defined in this chapter are used in this Code in the sense
hereinafter explained.
(1) Accountant General.—Means the head of an office of Accounts
and Audit subordinate to the Comptroller and Auditor General of India and
when used in relation to the Public Works Department the head of the office to
whom the accounts of the Division are rendered.
(2) Administrative approval.—The term denotes the formal acceptance,
by the Administrative Department concerned, of the proposals for incurring any
expenditure in the Public Works Department, on a work initiated by, or connected
with, the requirements of such Administrative Department. It is, in effect, an
order to the Public Works Department to execute certain specified works at a
stated sum to meet the Administrative needs of the Department requiring the
work. See also clause (53) below and paragraph 69 of the Kerala Public Works
Department Code.
(3) Appropriation.—Means the amount provided in the budget estimates
for a unit of appropriation or the part of that amount placed at he disposal of a
disbursing officer.
(4) Assets.—In the accounts of works, this term indicates all outstanding
or anticipated credits, which have to be taken in reduction of final charges.
Examples:—Recoveries of advances or recoverable payments and sale proceeds
or transfer value of surplus materials.
(5) Bank.—The term ‘The Bank’ means any office or branch of the
Banking Department of the Reserve Bank Of India, any branch of the State Bank
Of India acting as agent of the Reserve Bank Of India in accordance with the
provisions of the Reserve Bank Of India Act, 1934 (Act II of 1934), and any
branch of a subsidiary bank as defined in section 2 of the State Bank Of India
(Subsidiary Banks) Act, 1959 (Act 38 of 1959) which is authorised to transact
Government business as agent of the State Bank Of India, or any other agency
appointed by the Reserve Bank Of India.
DEFINITIONS 3
(6) Book transfer.—This term is applied to the process whereby
financial transactions which do not involve the giving or receiving of cash or of
stock materials are brought to account. Such transactions may either affect the
books of a single accounting officer, or they may involve operation on the books
of more than one accounting officer whose accounts are ultimately incorporated
in the accounts of Government. They usually represent liabilities and assets of
Government brought to account either by way of settlement or otherwise, but
they may also represent corrections and amendments made in Cash, Stock, or
Book Transfer transactions previously taken in to account.
(7) Charged expenditure.—Means expenditure which is not subject to
the vote of the Legislative Assembly.
Note.—Article 202 of the Constitution of India requires that the estimates of the
expenditure embodied in the budget should show the sums required to
meet the expenditure described by the Constitution as expenditure
charged on the Consolidated Fund of the State, separately from
expenditure which is subject to the vote of the Legislature.
(8) Commercial Department.—See Chapter IV of Kerala Account
Code—Vol.1.
(9) Competent authority.—The term “competent authority” Government
or any other authority to whom means the relevant powers may be delegated by
Government.
(10) Completion and completed.—The expression “completion of work”
may be understood to include “abandonment of a work”, and “completed work”
to include “abandoned work”.
(11) Contingencies (Works).—When used in respect of the accounts of
works, the term “Contingencies” indicates the incidental expenses of a
miscellaneous character which cannot appropriately be classified under any
distinct sub-head or sub-work, yet pertain to the work as a whole.
(12) Contract and contractor.—The term “Contract” means any kind of
undertaking written or verbal, express or implied, by a person, not being a
Government Officer or by a syndicate or firm, for the construction, maintenance
or repairs of one or more works, for the supply of materials, or for the
performance of any service in connection with the execution of works or the
supply of materials. The term “Contractor” means a person, syndicate or firm
that has made such an undertaking, but often its use is restricted to contractors
for the execution of works or for services in connection therewith.
4 DEFINITIONS
(13) Department.—This term when qualified by the prefix “The” is used

to indicate the Public Works Department.
(14) Deposit Works.—This term is applied to works of constructions or
repair the cost of which is met not out of Government funds, but out of funds
from Non-Government sources, which may either be deposited in cash or
otherwise placed at the disposal of the Divisional Officer. Works executed for
Municipalities and other public bodies fall under this category when the cost is
chargeable either to cash deposits made for the purpose, or to their credit
balances at treasuries.
(15) Detailed Head (See paragraph 3.1.7.)
(16) Direct and indirect charges.— “Direct Charges” and “Direct
Outlay” are those charges pertaining to a project, work or job, which are incurred
directly for its execution and are included in the regular accounts of it. “Indirect
Charges” are those charges which pertain, or are incidental to a work, project,
workshop job, or manufacture job, but which are not incurred directly or solely
in connection there with and thus cannot be taken directly into such detailed
accounts of it as are incorporated in the regular accounts of the expenditure of
the Department.
(17) Direction Office.—This term indicates the office of an
Administrative Officer who has one or more Divisional Officers working under
his orders and is not himself entrusted with the execution of works or with the
receipt and disbursement of public money, e.g., a Chief or a Superintending
Engineer, but, if such an officer is also entrusted at any time with the receipt and
disbursement of public money, he is treated as a Divisional Officer for the
purposes of this code, even though some part of his emoluments maybe treated
as Direction Charges.
(18) Direction Officer.—The Head of a Direction Office is known by
this designation.
Explanation.—A Government officer holding the rank of a superintending or even
a Chief Engineer is not a Direction Officer, unless the direction of
the business of one or more divisions is entrusted to him. Thus a
Superintending Engineer or Chief Engineer employed on a special
duty is not Direction Officer.
(19) Direct and Indirect receipts.— “Direct Receipts” are those items
of revenue receipts which are realised in connection with a work or project either
by officers of the Public Works Department or other departments and are
DEFINITIONS 5
brought to account directly as appertaining to the work or project. “Indirect
Receipts” are those receipts which pertain or are incidental, to a scheme or
work, but cannot be taken directly into such detailed accounts of it as are
incorporated in the regular accounts of the receipts of the Department.
(20) Division and Divisional Office.—These terms are used to denote
respectively the executive charges held by a Divisional Officer (clause 21 below)
and the head office of such a charge. Thus, the office of an independent
executive subdivision is a Divisional Office for the purposes of this Code, as also
that of the superintendent of a Workshop working independently of a Divisional
Officer and a District store under a Sub-divisional Officer.
(21) Divisional Officer.—This term is applied to an executive officer of
the Public Works Department who is not subordinate to another executive or
disbursing officer of the Department, even though the executive charge held by
him may not be recognised as a “division” by the Government concerned. Thus,
the officer in charge of an independent sub division/ District Store (major) is also
treated as a Divisional Officer for the purposes of this code(see also clause 17.)
Disbursing Officers of other departments, if they spend Public Works
Funds and are required to render their accounts direct to the Accountant General
are also included in the term Divisional officer.
(22) Final payment.—Means the last payment on a running account
made to a contractor on the completion or determination of his contract and in
full settlement of the account.
(23) Government.—Means the State Government unless the context
otherwise implies.
(24) Grant.—Means the amount voted by the Legislative Assembly in
respect of a demand for grant.
Note.—Estimates of expenditure which is not charged on the Consolidated
Fund, are submitted to the Assembly in the form of demands for grants
on the recommendation of the Governor. There should ordinarily be a
demand for grant for each major head of account but in some cases two
or more demands may be proposed for a major head while in others two
or more minor heads or parts of major heads may be included in a single
demand.
(25) Intermediate payment.—Is the term applied to a disbursement of
any kind on a running account, not being the final payment. It includes a
6 DEFINITIONS
“Secured Advance” and an “On Account Payment” (other than the final payment
on a running account), or a combination of these.
(26) Issue rate.—This term denotes the cost per unit fixed in respect of
an article borne on the Stocks of the Department, at a valuation for the purpose
of calculating the amount credible to the sub-head concerned (i.e., the sub-head
under which the article is classified) of the Stock Account by charge to the
account or service concerned, when any quantity of that article is issued from
stock. “Handling Charges” and “Storage Charges” will be included in the “Issue
Rate” by adding a suitable percentage based on the carriage and other incidental
charges of the previous year, and storage charges as reviewed and fixed at the
beginning of a year.
(27) Labour.—When a separate “Materials Account” is kept for one or
more sub-heads of an estimate and the term “Labour” is used in connection with
such an account, it denotes all charges pertaining to each of these sub-heads
other than (i) the cost of materials issued direct and (ii) carriage and incidental
charges in connection with the materials.
(28) Liabilities.—When used in respect of accounts of works, this term
includes all anticipated charges which are adjustable as final charges, but have
not been paid, or adjusted regardless of whether or not they have fallen due for
payment, or adjustment or having fallen due have or have not been placed to
the credit of the persons concerned in a suspense head subordinate to the
accounts of the work concerned.
(29) Major estimate.—Major Estimate is a term applied to the estimate
for a work when the sanctioned amount of the works expenditure exceeds
`50, 000. This term is also applied, for the sake of convenience, to the work
itself.
Note:—In the case of Central Civil Works an estimate for works expenditure
which exceeds ` 1,00,000 is classed as a major estimate with effect from
1st April, 1965.
(30) Major Head.—See paragraph 3.1.7.
(31) Market rate.—Used in respect of an article borne on the stock
accounts of a division, this term indicates the cost per unit at which the article,
or an article of similar description, can be procured, at a given time from the
public markets suitable to the division for obtaining a supply thereof. This cost
should be inclusive of carriage and incidental charges, and may even include a
reasonable provision for wastage and depreciation when these are inevitable.
DEFINITIONS 7
(32) Minor estimate.—Is the term applied to the estimate for a work,
when the sanctioned amount of the works expenditure does not exceed ` 50,000.
This term is also applied, for the sake of convenience to the work itself.
Note:—In the case of Central Civil Works an estimate for work expenditure which
does not exceed ` 1, 00,000 is classed as a minor estimate with effect
from 1st April 1965.
(33) Minor Head.— See paragraph 3.1.7.
(34) On account payment or payment on account.—Means a payment
on a running account to a contractor in respect of work done or supplies made
by him and duly measured. Such a payment may or may not be for the full
value of the work or supplies; if it is an intermediate payment, it is subject to the
final settlement of the running account on the completion of the contract for the
work or supplies.
(35) Operation.—Used in respect of the accounts of manufacture and
workshop transactions, this term indicates the charges incurred on the
manufacture operations connected with the general requirements of works or for
a specific work or job.
(36) Out–turn.—Used in respect of the accounts of manufacture and
workshop transactions, this term denotes the value of the finished products (or of
the work done, in cases in which the article brought are not supplied
departmentally of manufacture operations connected with general requirements of
works or for a specific work or job).
(37) Progress.—Means the up-to-date quantities of work done or
supplies made.
(38) Quantity.—In the accounts of works, this expression is used to
describe the extent of work done, supplies made or services rendered when these
can be measured, weighed or counted.
(39) Rate.—In estimates of cost, contractors bills and vouchers
generally, rate means the consideration allowed for each unit of work, supply or
other service. Except in the case of lump sum contracts, every bill or other
demand for payment should, as far as possible, set forth the unit rate at which
payment is to be made.
8 DEFINITIONS
(40) Rate of cost and Inclusive rate of cost.—”Rate of

Cost” means generally the total cost of a work or supply divided by its
quantity. In the accounts it represents the recorded cost per unit, as arrived at
by dividing the up-to-date final charge on a sub-head by the up-to-date
progress thereof. “Inclusive Rate of Cost” means the rate of cost of the entire
work relating to a sub-head, including the cost of materials if recorded separately
in accounts.
(41) Reappropriation.—Means the transfer of funds from one unit of
appropriation to another such unit.
(42) Recoverable payment.— Means a payment to or on behalf of a
contractor which does not represent value creditable or payable to him for work
done or supplies made by him and has therefore to be made good to Government
by an equivalent cash recovery of short payment of dues.
(43) Running accounts.—Is a term applied to the account with a
contractor when payment for work or supplies is made to him at convenient
intervals subject to final settlement of account on the completion or determination
of his contract.
(44) Sectional Officer.—Sectional Officer is a non-gazette official who
is placed in responsible executive charge of works or stores under the orders of
the officer-in-charge of a recognised sub-division and the accounts of whose
transactions are, therefore, ultimately incorporated in those of the sub-division.
(45) Secured advance.—Is a term applied specially to an advance made,
on the security of materials brought to site of works, to a contractor whose
contract is for completed items of work (See paragraph 10.2.33).
(46) Special Officer or Specialist Officer.—This term is applied in this
Code, to such officials of the Department as are neither Divisional Officers and
have no Divisional Officers working under their control, e.g., Consulting
Architects, etc.
(47) Storage charges.—Means expenditure incurred, after acquisition of the
stores on staff employed for handling the store materials (in custody) and the
maintenance charges of the store godown or yards. The establishment charges of
the staff of the stores entrusted in the duty of keeping initial accounts shall also be
included in the storage charges. These storage charges are added on a percentage
basis to the issue rate so as to form part of the issue rate [See clause 26]
DEFINITIONS 9
(48) Sub-divisional Officer.—This designation is applied primarily to an
officer, whether a gazetted officer or not, who holds the charge of a recognised
sub-division in subordination to a Divisional Officer, but when immediate
executive charge of any works or stores has not been constituted into a regular
sub-divisional charge, but is held by the Divisional Officer himself, the latter is
also treated as the Sub-divisional Officer in respect of such charge. When a
Divisional Officer holds the immediate charge of a recognised sub-division in
addition to his own duties as the executive head of the division, he is treated as
the Sub-divisional Officer in respect of the charge of the sub-division.
(49) Sub-head.—In the accounts of works and in working estimates,
this term is used to describe the sub-divisions into which the total cost of a work
(or of its sub-works if it is a large work) is divided for purposes of financial
control and statistical convenience. The several description of work that have to
be executed in the course of construction or maintenance of a work or sub-work
(e.g., excavation, brickwork, concrete, woodwork, etc.) are usually treated as the
sub-heads of it.
(50) Sub-work.—In the case of a large work consisting of several
buildings or smaller works, or groups thereof, the term sub-work is often applied
to a distinct unit of the same if that unit is sufficiently large or important to be
kept distinct for the purposes of accounts, for example, the outer wall, the
solitary cells, the cook houses, the Jailors’ quarters, etc., in the case of a large
Central Jail. In the case of Irrigation, Navigation, Embankment, Drainage and
Water- supply Projects, the head works, main line, each branch of a canal, each
group of distributaries relating to each branch separately, the drainage and
protective works, and Special Tools and Plant all form separate sub-works.
(51) Supervision charges.—This term is ordinarily applied to the
charges which are levied, in addition to book value in respect of stock materials
sold or transferred, and are intended to cover such items of the expenditure
incurred on the stores as do not enter their book value. (See clause 47).
(52) Suspense accounts.—This term is applied primarily to certain heads
of account, falling under the minor head “Suspense” of a major head of expenditure,
which are reserved for the temporary passage of such transactions as must at once
be taken to the account of the sanction or grant concerned, but cannot be cleared
finally either because the relevant payment, recovery or adjustment is awaited, or
because it is necessary to keep an effective watch over the values of any stock
materials, until their final disposal. The charges under a suspense account are taken
in enhancement of the charges under the major head of expenditure concerned, and
the receipts in reduction thereof. For suspense accounts within the accounts of
works (See paragraph 10.5.14.)
10 DEFINITIONS
(53) Technical sanction.—This name is given to the order of

competent authority sanctioning a properly detailed estimate of the cost of a
work of construction or repair proposed to be carried out in the Public Works
Department. Ordinarily, such sanction can only be accorded by Government in
the Public Works Department or by such authorities of the Department to whom
the power has been delegated by Government. Sanction accorded to a work by
any other department of Government is regarded merely as an administrative
approval of the work—vide clause 2.
(54) Unit of appropriation.—Means the lowest account head for which

a specific appropriation is placed at the disposal of the spending authority.
Note.—Ordinarily a sub-head of appropriation is the lowest unit for the purpose

of appropriation but in some cases the provision in a detailed account
head is treated as a specific appropriation, e.g., each major work under
“50 Public Works—Original Works—Buildings”. In such cases the
detailed account head is the unit of appropriation.
(55) Voted expenditure.—Means the expenditure which is subject to the

vote of the Legislative Assembly.
(56) Work.—The term ‘work’ when by itself, is used in a comprehensive

sense and applies not only to works of construction or repair but also to other
individual objects of expenditure connected with the supply, repair and carriage
of tools and plant, the supply or manufacture of other stores, or the operations
of workshop.
(57) Works expenditure and works outlay.—These terms are used to

indicate respectively the expenditure, and the capital charges on the special
services connected with the construction, repairs and maintenance of works. The
charges falling under these categories may be met when under rule, any
receipts are taken in reduction of the charges, but they do not include the cost
of the general services, tools and plant and establishment or any charges not
taken to final heads of account but kept under one of the suspense accounts .
GENERAL OUTLINES OF SYSTEM OF ACCOUNTS 11
CHAPTER–3
GENERAL OUTLINES OF SYSTEM OF ACCOUNTS
3.1. CLASSIFICATION OF TRANSACTIONS
3.1.1. The Public Works Department executes primarily works of all classes
[Civil Works (Civil Buildings and Communications), Irrigation, Navigation,
Embankment and Drainage Works] required for all departments of Government,
except such works as are vested in, or transferred to the administration of the
departments concerned; (vide paragraph 66 of Kerala Public Works Department
Code). Civil Works of Central Government, Defence or Railway works may also
be entrusted to the Department, either occasionally or as a standing arrangement
and at times works of other departments or Governments and Non-Government
works may also have to be undertaken.
Note.—Besides the foregoing, services such as the manufacture or supply of
stores are also under taken by Divisional Officers.
3.1.2. The general principles to be followed in the classification of civil
works expenditure are laid down in Article 33 of the Kerala Account Code, Vol.1.
3.1.3. Transactions relating to the charges and receipts connected with the
services pertaining to the works of the State Government and such of the Civil
Works of the Central Government which are entrusted to the State Government
for execution, e.g., construction and maintenance of National Highways are
adjusted finally in the accounts of Divisional Officers against the provision of
funds therefore placed at their disposal. Transactions connected with the
services for other Government works are not so adjusted finally but pass
eventually out of the accounts of Divisional Officers for incorporation in the
accounts of the departments and Governments concerned. Outlay on non-
Government works is charged against the deposits received therefore.
Note.—(i) When the Public Works Department executes works on behalf of
Civil Departments in respect of buildings the administration of
which has been transferred to them the charges relating thereto
shall be debited to the department concerned.
12 GENERAL OUTLINES OF SYSTEM OF ACCOUNTS
Note.—(ii) When a division undertakes a service on behalf of another division

the connected receipts and charges are in the absence of any
instructions to the contrary, passed on for adjustment finally in the
accounts of the latter division.
Note.—(iii) Operations undertaken in the manufactories and workshops of a
division on behalf of other divisions, departments, Governments,
local bodies or individuals are treated as operations, of the division
in the first instance but the entire cost is ultimately recovered from
the party concerned either by book transfer or in cash as the case
may be. In the case of the P.W.D Engineering Workshop the cost of
operation is required in cash.
Exception.—Payments for supplies made to Government officers in Trivandrum
by the P.W.D. Engineering Workshop, Trivandrum will be made
through Contingent bills endorsed in favour of the superintendent of
the workshops—(Vide Note under Article 128(g) of the Kerala
Financial Code, Volume1)
3.1.4. In all cases the primary accounts of these transactions should be kept
in accordance with the rules of this Code, even though the ultimate cost of the
transactions may not have to be brought to account finally in the books of the
Divisional Officer.
3.1.5. The performance of these services and the subsidiary proceedings give
rise to a number of other transactions with other departments, Governments, etc.,
which have also to be brought to account, e.g., funds have to be obtained from treasur-
ies to meet liabilities incurred, receipts realised have to be lodged in treasuries, and
stores have to be obtained from other divisions or departments, etc.
3.1.6. The transactions of Public Works Officers may thus be grouped
under the heads indicated below:—
(i) Expenditure heads : for charges adjustable finally in the accounts
of Divisional Officers;
(ii) Revenue heads: for revenue receipts creditable finally to
Government in the accounts of Divisional Officers;
(iii) Remittance heads: receipts as well as payments for cash, stores or
other values received from, or paid to or on behalf of, other departments or
Governments. The initial debits of credits to the heads in this group will be
cleared eventually by corresponding receipts or payments;
(iv) Debt and deposit heads: for certain receipts and payments held in
suspense pending clearance by payment or recovery (as the case may be) in cash
or otherwise together with the repayments of the former and recoveries of the latter.
The suspense accounts for transactions of this group are treated either as heads
subordinate to the expenditure heads or as independent heads of account, or as
sub-heads in the accounts of works as will be explained in latter chapters.
3.1.7. The transactions under each of these groups are further sub-divided
for purposes of accounts. In the case of expenditure and revenue heads, the main
unit of classification is known as the major head, and the further divisions of it
as minor heads, each of which has a number of subordinate heads generally
known as detailed heads.
Note.—(i) For departmental purposes, Public Works Officers usually divide a
detailed head into a number of “service heads” and the latter into a
number of “departmental heads” but for purposes of account, the
single term “detailed heads” is used for all divisions subordinate to
a minor head.
Note.—(ii) In the case of Irrigation, Navigation, Embankment, Drainage and
Water-supply works, the sub-divisions into which the minor head
“Works” is divided for departmental purposes are called “sub-
works” and the further sub-division of the latter as “detailed heads”.
3.1.8. The detailed classification of the account heads used in respect of
Public Works Account is given in Appendix 3.
Note.—(i) The introduction of any new major or minor head as well as the
abolition or change of nomenclature of any of the existing heads
requires the approval of the Comptroller and Auditor General of India
who will obtain the approval of the President wherever necessary. The
Accountant General shall have discretion to open all the detailed
heads and when necessary to open a new one if a prescribed head is
not suitable. It should however be secured that the detailed heads are
not multiplied unnecessarily and that only such heads are opened in
the accounts as are really essential. The detailed head subordinate to a
minor head should be so arranged in accounts as to exhibit separately
the expenditure under each unit of appropriation as prescribed by
Government from time to time.
14 GENERAL OUTLINES OF SYSTEM OF ACCOUNTS
Note.—(ii) In the case of works undertaken by the Public Works Department

as a standing arrangement for other departments, when the cost is
debitable to those departments the prescribed classification
applicable to the connected transactions is intimated by the
Accountant General.
3.1.9. Revenue is realised and placed to the credit of Government as it falls due
under the statutory or other rules governing it, but expenditure can be incurred only
against a grant voted by the Legislature or against the sum provided by Government
to meet charged expenditure. The incidence of expenditure between voted and charged
is determined by the relevant provisions of the Constitution.
Note.—A list of items of expenditure charged on the Consolidated Fund of the
State in so far as it relates to the Public Works Department is given
below:—
(i) Expenditure connected with the execution of works in the Raj
Bhavan—[See paragraph 82 (a) of the Kerala Public Works
Department Code];
(ii) Debt charges for which the State is liable including interest,
sinking fund charges and redemption charges and other
expenditure relating to the raising of loans and the service and
redemption of debt ;
(iii) Any sums required to satisfy any judgment, decree or award of any
court or arbitral tribunal;
Note.—In order that a body or authority may be a “tribunal” within the scope of
“arbitral tribunal” it must be constituted by the State (and not merely by an
agreement of the parties) and must be invested with the State’s inherent judicial
(as distinguished from purely administrative or executive) powers and the
“trappings of a Court”. However, in cases where the award made by a private
arbitrator is filled in a Court and a decree is obtained in terms of the award,
expenditure required to satisfy the decree of the Court will be the expenditure
charged on the Consolidated Fund of the State;
(iv) Any other expenditure declared by the Constitution or by the
Legislature of the State by law to be so charged.
3.2. SYSTEM OF ACCOUNTS
3.2.1. The main features of the system of Public Works Accounts are:—
(a) The Divisional Officer is the primary disbursing officer of the division
who is permitted to obtain by cheques on treasuries or the Bank the funds required
for all disbursements in connection with the execution of works. He also collects
some of the departmental receipts of the division and pays them into treasuries or the
Bank.
(b) The accounts of these receipts and disbursements (including the
transactions of subordinate officials acting on his behalf) are compiled under his
supervision by an Accountant posted to his office by Government, and are submitted
monthly to the Accountant General who audits them against sanctions and
appropriation of funds and then incorporates them in the general accounts of the
State.
(c) He is further required to maintain clear accounts of all stores received by
him and to make these accounts available for audit by the Accountant General.
(d) Under each major head of expenditure, the charges on each project,
work, or sub-work, are recorded separately in the accounts of Divisional Officers. In
the case of works of certain classes (See example cited below), Pro forma accounts
of all transactions connected therewith are prepared annually by the Accountant
General or by the Divisional Officer, as may be required, and for this purpose, the
receipts pertaining to each work of this class in so far as the Divisional Officer is
responsible for realising and accounting for the same are also shown separately in
divisional accounts:—
(i) Irrigation, etc., for which separate capital accounts are kept.
(ii) Quasi-commercial undertakings, such as self-supporting workshops.
(iii) Residential buildings.
(e) Personal payments to all Government Officers of the Department are
made on bills presented at treasuries in accordance with the general provisions of the
Treasury Rules and are therefore brought to account by the Accountant General
himself from data furnished to him direct by Treasury Officers.
3.2.2. It is not sufficient that an officer’s accounts should be correct to his own
satisfaction. A disbursing officer has to satisfy not only himself but also the Audit
Department, that a claim which has been accepted is valid, that a voucher is a complete
proof of the payment which it supports and that an account is correct in all respects.
It is necessary that all accounts should be so kept and the details so fully recorded, as
to afford the requisite means for satisfying any enquiry that may be made into the
particulars of any case, even though such enquiry may be as to economy or the bona
fides of the transactions. It is further essential that the records of payment, measure-
ment and transactions in general must be so clear, explicit and self-contained as to be
producible as satisfactory and convincing evidence of facts, if required in a Court of
Law. All transactions involving the giving or taking of cash, stores, other properties,
rights, privileges and concessions which have money values should be brought to
account. The record of a transaction of receipt or expenditure should always be made
at once under the final or the debt, deposit or remittance head to which it pertains, if
that be known; but if the exact head cannot be ascertained at once, then the transac-
tion should be classified temporarily under Deposits if a receipt, or under “Miscella-
neous P.W. Advances,” if a charge.
RELATIONS WITH ACCOUNTANT GENERAL
16
CHAPTER–4
4.1. GENERAL
4.1.1. The Divisional Officer, as the primary disbursing officer of the

division, is responsible not only for the financial regularity of the transactions of
the whole division but also for the maintenance of the accounts of the
transactions correctly and in accordance with the rules in force. He is further
require to submit his accounts to the Accountant General for audit and for
incorporation in the general accounts. See also paragraph 26 of the Kerala
Public Works Department Code.
Note.—The accounts returns which have ordinarily to be submitted for audit and
compilation are enumerated in Chapter 22, but the Accountant General is
authorised to call for such additional accounts, registers, documents and sub-
sidiary papers having relation thereto, as he may require for the elucidation
thereof.
4.1.2. The Divisional Officer is responsible that the accounts of his
division are not allowed to fall into arrears; but if arrears or confusion arise
which in his opinion cannot be cleared without the assistance of the Accountant
General he should at once apply for such assistance explaining the circumstances
which led to such a state of affairs and why it cannot be attended to by the
normal staff of the division.
4.2. DIVISIONAL ACCOUNTANT
4.2.1. To assist Divisional Officers in the discharge of their responsibilities

referred to in paragraph 4.1.1. Government will post a Divisional Accountant to
each Divisional Office.
4.2.2. Rules for appointment to the cadre of Divisional Accountants are
given in Appendix 2.
4.2.3. No person who is not eligible to be appointed to the cadre of
Divisional Accountants may be posted to a division. In any individual case
where a qualified Divisional Accountant is not available an exception may be
permitted, as a purely temporary arrangement, by Government.
RELATIONS WITH ACCOUNTANT GENERAL 17
4.2.4. The functions of the Divisional Accountant are three fold:—
(i) as accountant, i.e., as the compiler of the accounts of the division in
accordance with the prescribed rules and from the data furnished to him;
(ii) as internal checker i.e., as the representative of Government charged with
the responsibility of applying certain preliminary checks to the initial accounts, vouch-
ers, etc.
(See Chapter 22); and
(iii) as financial assistant i.e., as the general assistant and adviser to
the Divisional Officer in all matters relating to the accounts and budget
estimates, or to the operation of financial rules generally.
4.2.5. In the discharge of these duties he is expected to keep himself fully
conversant with all sanctions and orders, passing through the office and with
other proceedings of the Divisional Officer and his subordinates which may affect
the estimate or accounts of actual or anticipated receipts and charges. He should
advise the Divisional Officer on the financial effect of all proposals for
expenditure and keep a watch, as far as possible, over all the liabilities against
the grants of the division as they are incurred.
4.2.6. The Divisional Officer should see that he is given the fullest
opportunity of becoming conversant with these sanctions, orders and proceedings.
To enable him to discharge his duties efficiently the Divisional Accountant is
treated as the senior member of the office establishment of the division, though
his position is analogous to that of a Sub-divisional Officer.
4.2.7. The Divisional Accountant is expected to see that the rules and
orders in force are observed in respect of all the transactions of the division
which come within his sphere of duties. If he considers that any transaction or
order affecting receipts or expenditure is such as would be challenged by the
Accountant General, it is his duty to bring this fact to the notice of the
Divisional Officer with a statement of his reasons, and to obtain the orders of
that officer. It will then be his duty to comply with the orders of the Divisional
Officer; but if he has been over-ruled and is not satisfied with the decision, he
should at the same time make a brief note of the case in the Register of
Divisional Accountant’s Objections, K.P.W. Form 57 and lay the Register before
the Divisional Officer, so that the latter may have an opportunity either of
accepting the Divisional Accountant’s advice on reconsideration and ordering
action accordingly, or of recording his reasons for disregarding that advice. In
the month of April each year an extract from this register should be submitted
18
to the Finance Department of Government for review and orders and an
objection entered in this register should not be considered as finally disposed of
until the orders of the Finance Department are received and entered in the last
column of the register.
4.2.8. The Divisional Accountant should see that satisfactory, and efficient
arrangements are made for checking computed tenders;
4.2.9. He should conduct personally a test check of the computed and
checked tenders sufficient to satisfy himself reasonably that the checking work
has been properly done; and
4.2.10. He should see that the comparative statement correctly incorporates
the totals as checked on the individual tenders.
4.2.11. The Divisional Accountant should bring to the Divisional Officer’s
notice all instances in which subordinate officers exceed the financial limitations
on their powers placed by the Divisional Officer or higher authority.
Note.—(i) If the Divisional Officer is allowed a lump sum appropriation for expenditure
on a group of works and he has made out of it appropriations for individual
works, expenditure should be watched against individual appropriations
and excesses brought to the Divisional Officer’s notice. But if a lump sum
appropriation is made for a group of works or items of expenditure of a
division the total expenditure thereon will be audited against the lump sum
placed at the disposal of the Divisional Officer for the purpose.
Note.—(ii) The check against any specific reappropriation which the Divisional
Officer may make out of any lump sum placed at his disposal is con-
ducted by the Divisional Accountant on his behalf.
4.2.12. He may further be required by the Divisional Officer to undertake
on his behalf, such other scrutiny of the accounts of the receipts and
disbursement of subordinate officers, falling within the Divisional Officer’s own
powers of sanction, as the latter may consider necessary.
4.2.13. The Divisional Accountant is further required to inspect at least
once a year under the orders of and at the same time as the Divisional Officer,
the accounts records of Sub Divisional Officers and to check a percentage of the
initial accounts. The defects noticed should be reported to the Divisional Officer
for orders, but the Divisional Accountant will be responsible, as far as possible,
for explaining personally the defects of procedure and for imparting necessary
instructions thereon to the Sub-divisional Officers and their staff.
Note.—(i) The results of these inspections should be placed on record for the in-
spection of the Accountant General, but serious financial irregularities
should be reported at once for the information of that officer, even though
set right under the orders of competent authority. All defalcations or
losses of public money, stores or other property should be reported im-
mediately to the Accountant General and other authorities concerned.
Note.—(ii) The accounts of interest bearing securities maintained by Sub-divisional
Officers should be examined to see that the rules relating to them are
observed and that the register in K.P.W. Form 81 is correctly maintained
and with this object a few transactions of the register should be compared
with the entries in the cash book or other accounts and vice versa. The
securities certified in the last annual account of interest-bearing securi-
ties, K.P.W. Form 82 as being on hand should be verified by inspection as
far as possible, and it should be seen, in respect of such of them as are
not produced for inspection, that there are in existence either the original
acknowledgements of the depositors bearing dates subsequent to the dates
of the last account, or the acknowledgements of the authorised custodians
as the case may be.
4.2.14. Two sets of questions for the guidance of the Divisional
Accountants in carrying out inspections are contained in Appendix 7. Part I of
the questions contains the subjects which should necessarily be examined by
the Accountants. Part II refers to matters about which the Accountants, should
obtain, before commencing their inspections, the specific orders of the Divisional
Officer in writing as to whether they should examine them or whether the
Divisional Officer would take them up. The Accountants will then take up those
subjects in Part II which the Divisional Officer has ordered them to do so. The
remaining points therein should be examined by the Divisional Officer himself.
4.2.15. The Divisional Officer has a right to seek the advice of the
Accountant General in all matters connected with the accounts of his division or
the application of financial rules and orders concerning which there may be any
doubt. It will usually be desirable, however that he shall first obtain the advice
of the Divisional Accountant who is specially trained for this duty, and this
should be done in writing in all cases of importance.
20 RELATIONS WITH ACCOUNTANT GENERAL
4.3. ACCOUNTANT GENERAL’S INSPECTIONS
4.3.1. The Accountant General arranges for the periodical test audit and
local inspection of the accounts of Divisional and Sub-divisional Offices, and the
Divisional Officer is responsible that the initial accounts and other connected
records are made available for inspection. Inspecting Officers are required, if
possible, to discuss the drafts of their reports with the head of the office
inspected before submitting them to the Accountant General, and for this purpose,
it is desirable that the head of the office should be present at the inspection
unless his presence is urgently required elsewhere.
4.4. COMMUNICATION OF SANCTIONS TO

ACCOUNTANT GENERAL
4.4.1. As a general rule every sanctioning authority is responsible that all

sanctions and orders against which audit of receipts or disbursements is to be
conducted by the Accountant General are communicated to him in accordance
with such procedure, as may have been prescribed locally in consultation with
the Accountant General. See also paragraphs 18.6.1. to 18.6.3. below and
paragraph 192 of the Kerala Public Works Department Code.
4.4.2. Audit against sanction accorded by the Divisional Officer is
conducted in the audit office only in respect of sanctions to write off of stores
or losses of public money. In respect of other sanctions of the Divisional
Officer the Divisional Accountant is responsible for the necessary check, vide
paragraph 4.2.4.
4.4.3. It is not necessary to supply Administrative approvals to the
Accountant General. Technical sanctions need be communicated to the
Accountant General only in respect of works relating to projects costing more
than ` 25 lakhs and non-project works costing more than ` 5 lakhs. Such
sanctions should be forwarded to the Accountant General not later than the 5th of
the month following the month of sanction. Financial sanctions otherwise known
as expenditure sanctions and allotment of funds should be communicated to the
Accountant General.
4.4.4. Sanction to contract agreements for works, supplies, carriage etc.
Which are accepted by authorities higher than the Divisional Officer should be
communicated to the Accountant General by the authority who accepted the
tender in such form so as to enable that Officer to audit the payments to
contractors on the basis of rates sanctioned for each item of work or supply and
other necessary terms and conditions. Duplication of agreements should in no

case be required, that is to say, an authority who has concluded an agreement
should not be required to draw up and sign again an agreement already
executed.
4.5. RESULTS OF AUDIT
4.5.1. The results of audit are communicated to the Divisional Officer in

the form of Audit Notes, Objection Statements, Inspection Reports, Letters or
Memoranda. These should receive prompt attention, vide Articles 69 to 74 of the
Kerala Financial Code and the replies of the Divisional Officer should be based,
as far as possible, on his own knowledge. It is not enough to pass on the
explanation of a subordinate; reports prepared in this manner may lull suspicion
for the time being but lead to greater irregularity afterwards.
4.5.2. Each audit note should be returned to the Audit Office within fifteen
days of its receipt in the Divisional Office while each objection Statement should
be returned within one month.
4.5.3. Objection Statements and Inspection Reports should be returned
through the Superintending Engineer after the Divisional Officer has recorded his
replies thereon. The Superintending Engineer will pass orders in respect of
matters which he is competent to deal with finally and record his remarks (with a
note of the action taken) on all other points, before returning the documents to
the Accountant General.
Note.—As an exception to the above rule, the Divisional Officer may send his first
reply to an Inspection report direct to the Accountant General with a copy of
the reply to the Superintending Engineer.
4.5.4. Once a transaction has been entered in the Objection Statement, or
otherwise challenged in one of the other documents referred to in paragraph
4.5.1. The responsibility for having the objection removed will devolve upon the
Divisional Officer, and the Accountant General is required to report to the higher
authorities all important items and any serious delays in the adjustment of
individual objections.
4.5.5. An audit objection is usually removed by obtaining the requisite
sanction, by making the necessary recovery by correcting or completing the
relevant account or voucher, by furnishing the necessary documents or
information, or by otherwise securing compliance with the provisions of a
specified rule. In case in which a protest is made against as audit objection as
being incorrect, the objection should be held to be in force unless a formal
intimation of its withdrawal is received from the Accountant General.
22 APPROPRIATION AND CONTROL OF EXPENDITURE
4.5.6. The Accountant General will place under objection any transaction
coming to his notice which is not covered by adequate sanction or involves an
excess thereon or other deviation. In some cases, the Divisional Officer may
have already taken action to regularise the transactions or the excess (if any) over
sanction plus any further excess that may be anticipated, may be within his own
powers of sanctions without preparing a revised estimate, and he may have
accorded the necessary formal approval to it; yet, if the necessary intimation of
sanction does not reach the Accountant General when the Divisional accounts in
which the irregular transaction appears are being audited, the Accountant General
will raise the objection as he is not authorised to assume that the necessary
sanction has been accorded. Divisional Officers will, therefore find it advisable
to send to the Accountant General the earliest intimation of such of their
sanctions and orders as are required to be communicated to him (vide paragraphs
4.4.1. to 4.4.4.) and to give it, without waiting for the receipt of the Objection
Statement or Audit Note, all necessary information in regard to transactions for
which, within their knowledge, adequate authority does not exist. A single note
or statement, prepared monthly and signed by the Divisional Officer, himself, will
ordinarily suffice, in respect of transactions brought to account in the monthly
Account, but, if it cannot precede or accompany the Monthly Account, it should
be sent to the Accountant General within a week of the despatch of the
Account.
Note.—The object of this rule is to obviate the issue of unnecessary audit objections; but
a reduction in the number of objections can be effected only by observing the
requirements of the financial and other rules bearing on the transactions, and by
taking timely action to accord or obtain, as the case may be, such sanction or
order as may be required in cases in which a deviation from rule has occurred.
4.5.7. The Divisional Accountant is responsible (a) for bringing prominently
to the notice of the Divisional Officer, at least once a month, all irregular
transactions on which action has not already been taken by the latter at the
instance of Sub-divisional Officer or of his own motion, and (b) for giving effect
to the provisions of this paragraph in accordance with the procedure which the
Divisional Officer may have desired to be observed in this connection.
APPROPRIATION AND CONTROL OF EXPENDITURE 23
CHAPTER–5
APPROPRIATION AND CONTROL OF EXPENDITURE
5.1. INTRODUCTORY
5.1.1. (a) Expenditure, as defined in paragraph 3.1.9. can only be incurred

on a work or other object—
(i) If the sanction of competent authority has been obtained as required by
any statutory rules or by any orders general or special, issued there under by compe-
tent authority e.g., the rules in any authorised Code.
(ii) If funds to cover the charge during the Year have been provided by
competent authority.
Note.—When under paragraph 170 of the Kerala Public Works Department Code, an
intimation is received from an officer of the Public works Department that he
is incurring an unauthorised liability on a week, the Accountant General will
bring the facts instantly to the notice of the competent authority so that
steps may be taken either to stop the work or to regularise its execution.
(iii) If the expenditure conforms to the relevant provisions of the Constitu-
tion and to the Financial Rules, Regulations and Orders issued by competent author-
ity.
(b) For payments chargeable to the accounts of other divisions,
departments, or Governments, or of non Government works and repayments of
deposits, a Divisional Officer does not necessarily require any specific provision
of funds within the appropriations for his own division. It is sufficient to see
that such payments are made only in accordance with the rules in the relevant
chapters of this Code.
Note.—The expenditure in respect of work done for other divisions, departments or
Governments is brought to account under the remittance or other heads con-
cerned (which are all in the Public Account), but it should be restricted to the
appropriation for the work as communicated or accepted by the party for
which the work is executed and should not be exceeded without further au-
thority from it.
The expenditure on non-Government works and repayment of deposits are
accounted for under “P.W. Deposits” in the Public Account for which no
appropriation is required. When expenditure is incurred on non-Government
works in excess of the deposit received the excess expenditure will be classified
under `Miscellaneous P.W. Advances’.
Note.—For inevitable payments See Para 10.5.25.
24 APPROPRIATION AND CONTROL OF EXPENDITURE
5.2. GRANTS AND THEIR DISTRIBUTION

5.2.1. A grant or supplementary grant may include expenditure falling
under one or more major heads or sections of a major head. For purposes of
accounts classification, each major head of account is sub-divided into minor
heads, the latter being further divided into detailed heads, service and
departmental heads—See paragraph 3.1.6. The sub-divisions of a minor head
from the point of view of the distribution of grants and the control of
expenditure are known as primary and secondary units of appropriation.
5.2.2. The Demands for grants presented to the Legislature are for the gross
amount of expenditure to be incurred; recoveries taken in reduction of expenditure
being shown separately. Accordingly the appropriation for the minor head
“suspense” subordinate to the public works Major Heads provide for the gross
debits of the whole year. The issue of stock materials to works etc. and other credits
of the year are exhibited separately in the Demands. In the case of works
expenditure, however, the credits arising as a result of sale proceeds of surplus
materials and plant acquired specially for any work, or of materials received from
dismantled structures should be taken in reduction of expenditure—vide paragraph
22.2.11. And the demand should be for the net amount of expenditure.
Note.—The procedure, regarding recoveries relating to works indicated in this para-
graph is applicable only to the estimated recoveries which are known at the
time of framing the estimates. Unanticipated credits should be surrendered
separately and the final grant should not include them.
5.2.3. The procedure regarding the preparation of budget estimates, the
appropriation and reappropriation of funds, the distribution of funds and other
budget matters is laid down in the Budget Manual of the state. The rules
relating to the Public Works Department are extracted and incorporated as
Appendix 4.
5.3. WATCHING OF ACTUALS
5.3.1. It is an important function of the Divisional Officer to keep constant

watch over the progress of expenditure as he is ultimately responsible for
keeping the expenditure within the allotments for the division. He should
accordingly keep himself informed of such circumstances as may affect the
progress of expenditure in order to take early steps for obtaining extra funds or
surrendering probable savings as may be necessary.
APPROPRIATION AND CONTROL OF EXPENDITURE 25
5.3.2. The plan to be followed in actual practice for this purpose will be
slightly different in the case of the expenditure met by means of cheques drawn
on the treasury and accounted for monthly in the Divisional Accounts from that
to be followed in the case of expenditure met by bills presented at the treasury
and not passing through the Divisional Accounts.
5.3.3. It will be found convenient in practice to adopt the following plan
for watching the progress in the case of expenditure met by means of cheques
drawn on treasuries.
(a) The progress of expenditure on works or other items for which there are
specific appropriations should be watched individually month by month through the
Register of works and other relevant accounts.
(b) In respect of works or other items for which lump sum appropriations are
placed at the Divisional Officer’s disposal, he will watch the progress of expenditure
against appropriations by maintaining a record (i) of the expenditure in the form of a
progressive abstract showing, month by month, the up-to–date expenditure of the
year, and (ii) of grants in the form of a register showing the appropriations and
reappropriations ordered from time to time.
(c) In the case of suspense heads, the suspense schedules in K.P.W. Forms
65, 67 and 68 can be utilised after noting in them the appropriation for the year and
watching the expenditure against such appropriation. Thus the Divisional Accounts
can be utilised for watching the progress of expenditure against the appropriation.
(d) In this review of expenditure, undischarged liabilities play an important
part and their effect on individual and lump sum appropriations should, therefore, be
watched.
Note 1.—Liabilities may be divided into four classes:—
(i) those outstanding in the suspense accounts relating to purchases,
contractors and labourers in the accounts of works.
(ii) those outstanding in any of the regular suspense accounts of the division.
(iii) outstanding debts adjustable by book transfer, and
(iv) matured claims of contractors, suppliers, etc., awaiting settlement
and all unmatured claims, recurring or non-recurring likely to fall due
for settlement before the close of the year.
26 CASH
Note 2.— Liabilities of class (ii) may affect not only the grants for the minor head
‘suspense’ of the major head under which the suspense head concerned
is classed, but also the grants for works and services falling under the
same and other major heads. This factor will have to be taken into account
in providing funds.
(e) Anticipated credits (if any) which will ultimately be taken in reduction of
the expenditure chargeable against any individual or lump sum appropriation should
also be taken into account (See Statement E—Appendix 3).
(f) This review is of special importance during the last three or four months
of the year.
(g) This review should also be conducted collectively in respect of each

primary or secondary unit of appropriation, a suitable register of appropriations being
maintained for the purpose [See paragraph 5.3.3. (b) above]. Such a review is of
special help in formulating proposals for reappropriation.
5.3.4. All liabilities and assets of the division adjustable by transfer credit
or debit to remittance heads of accounts should be registered in K.P.W. Form
54, Register of Transfers Awaited, as soon as they become known. As they are
cleared, an entry should be made in columns 7 to 9 so that items awaiting
adjustment may be known at any time.
Note.—This register is intended primarily for all transfer transactions, recurring or

non-recurring which have to be responded to by the division, but if desired,
important items which will be cleared by original debits or credits may also
be entered to facilitate the watching of their clearance.
5.3.5. The detailed rules for the control of expenditure against the grant,
framed by Government and embodied in the State Budget Manual are
reproduced in Appendix 4 to the extent they are relevant to the Public Works
Department.
CASH 27
CHAPTER–6
CASH
6.1. INTRODUCTORY
6.1.1. The term “cash”, as used in this chapter, includes legal tender coin,
currency notes, cheques and drafts payable on demand. A small supply of ten paise
revenue stamps may be kept as part of the cash balance.
Note.—Government securities, deposit receipts of banks, debentures and bonds ac-
cepted as security deposit under the provisions of paragraph 15.2.2. are* not
to be treated as cash.
6.1.2. The Divisional Officer is the primary disbursing of the division, and
all realisations and payments on Government account made by his subordinates are
made on his behalf and on his responsibility.
6.1.3. Every Government Officer is personally responsible for the money which
passes through his hands and for the prompt record of receipts and payments in
the prescribed account as well as for the correctness of the account in every respect.
The private cash or accounts of members of the Department may not be mixed up
with the public cash or accounts.
6.1.4. In their application to treasuries the cash business of which is conducted
by the bank, the rules in this code are subject to the relevant provisions of the
Kerala Treasury Code.
6.2. MODES OF OBTAINING CASH FROM TREASURIES
(i) General
6.2.1. Disbursing Officers of the Department obtain cash for disbursement
in two ways, viz., directly by bills drawn on the treasury or by means of cheques.
For payment of pay and allowances of Government Officers on the regular
establishment not charged directly to works, certain heads of offices and
other officers draw bills on treasuries in prescribed forms in accordance with
the rules in Chapter 18. All other disbursements are made by Divisional Officers,
who may empower Sub-divisional Officers, to make disbursements on their
behalf. For this purpose, Divisional Officers are ordinarily placed by the
Accountant General in account with one or more treasuries within their jurisdiction
and they may either authorise Sub-divisional Officers to obtain money from the
treasuries within the jurisdiction of the latter by drawing cheques or place them in
funds by means of a fixed impress or by transfer of cash from the divisional cash
chest.
*G.O. (P) 23/74/Fin. dated, 6-2-1974.
28 CASH
6.2.2. Sub-treasuries are collecting depots and not disbursing treasuries, but
to meet the convenience of Public Works Officers it has been arranged that funds
required for disbursement may be obtained by means of cheques drawn on sub-
treasuries subordinate to a treasury with which a disbursing officer has been placed
in account.
Note.—The term “treasury” as used throughout this Code includes a sub-treasury
unless the contrary is evident from the context.
6.2.3. The appropriation of departmental receipts to expenditure in the
Department is strictly prohibited except in the cases where this rule is relaxed by
Government
6.2.4. In the Public Works Department a Divisional Officer or Sub-divisional
Officer may make use of cash receipts temporarily for current expenditure instead
of obtaining cash by cheques subject to the observance of the procedure prescribed
in paragraph 6.3.6. [Vide also Rule 6 (3) of the Kerala Treasury Code, Volume I.]
6.2.5. The procedure prescribed for accounting of cash obtained from
treasuries on bills for pay and allowances of establishment not charged directly to
works or on contingent bills, is detailed in Chapters 18 and 19. Undisbursed balances
of cash thus obtained may be kept in departmental cash chests, but they should
not be mixed up with the regular cash balances of the Department, accruing from
money obtained on cheques, which are dealt with and accounted for in accordance
with the rules in the following paragraphs.
6.2.6. Without making previous arrangements through the Accountant General
no officer is authorised to draw cheques on a treasury situated outside the limits of
the States.
6.2.7. When, for the convenience of work, it is necessary that the
Divisional Officer or any of his subordinate disbursing officers should be
authorised, either occasionally or as a standing arrangement to draw cheques on
a treasury situated outside the limits of the division, such an arrangement may be
sanctioned by the Accountant General on the recommendation of the Superintending
Engineer.
6.2.8. Similarly, the Divisional Officer may if necessary specially authorise
any of his Sub-divisional Officers to draw cheques on treasuries situated outside
the jurisdiction of the latter but within the limits of the division.
CASH 29
Note.—This rule is intended to be applied with special care and only, to cases of real
necessity. Payments to contractors should as far as conveniently practi-
cable, be made by cheques on the nearest treasury and a stipulation to the
effect that payments shall be so made should be inserted in the contract
agreement where necessary.
(ii) Limits on Divisional and Sub-divisional Officers drawings
6.2.9. If the Divisional Officer considers it necessary, for the maintenance of
efficient control over the disbursements of his division, to set a monthly limit on
the drawing of any of his Sub-divisional Officers, he may do so, fixing either a
standing limit or a fresh limits either every month or whenever necessary. All such
limits may be raised or lowered subsequently. Intimation of every limit when fixed
or changed should be sent both to the Sub-divisional Officers and to the Treasury
Officers concerned. At places where the cash business of the treasury is conducted
by the bank similar intimation should be sent to the bank also direct.
Note.—(i) For this purpose, the Divisional Officer may require the Sub-divisional
Officer to submit, by a convenient date, an estimate of his probable re-
quirements in suitable form.
Note.—(ii) At the option of the Divisional Officer, the limitation may not be intimated
to the Treasury Officer, and the bank concerned if the check exercised by
the Divisional Accountant over the sub-divisional cash accounts after
the expiry of the month, is considered sufficient for the purposes of the
Divisional Officer. See paragraph 4.2.4.
(iii) Cheques
6.2.10. Petty sums under ten rupees should not be paid by cheques and for
the disbursement of these and other charges which naturally are paid in cash, e.g.,
the wages of labourers and of establishment charged directly to works and value-
payable postage, it is permissible to draw money from time to time from the treasury
by cheques to replenish the cash chest. Whether there be a guard or not, disbursers
must draw cheques for the minimum of cash actually required to meet current
disbursements and if it is found at any time that the balance in hand is larger than
is required to meet the anticipated expenditure of the next month, or of the next
fifteen days if the treasury is not situated at an inconvenient distance, the surplus
should be returned to the nearest treasury.
30 CASH
6.2.11. In drawing cheques, drawing officers should be guided by the general

rules laid down in Rules 239 to 247 of the Kerala Treasury Code, Volume I. The
special rules applicable to the Department are set forth in paragraphs 6.2.12. to
6.2.20.
6.2.12. Before a cheque book is brought into use, all the cheque forms in it
should be marked by a distinguishing letter. Cheques drawn by a disbursing officer
on any treasury should be distinguished by a different letter from those drawn by
the other disbursing officers of the division on that treasury and also from those
drawn by himself on any other treasury.
6.2.13. The drawing officer shall notify to the treasury upon which he draws,
the number of each cheque book which from time to time he brings to use and the
number of cheques it contains. In the case of sub-treasuries the advice of the number
of the cheque book to be used (vide Rule 264 of the Kerala Treasury Code, Volume
I) should ordinarily be sent through the district treasury; but in cases of urgency,
it may be sent direct to the sub-treasury, a copy being forwarded simultaneously to
the district treasury.
6.2.14. If a limit has been set by the Divisional Officer on the drawings of a
Sub-divisional Officer under the provisions of paragraphs 6.2.9. the limit prescribed
for the drawings on each treasury during a month should be entered on the reverse
of the counterfoil of the cheque book for that treasury before any cheques are drawn
during that month and the Sub-divisional Officer should watch that the limit is not
exceeded by deducting from it, on the reverse of the counterfoils, the amount of
each cheque as it is drawn. The undrawn balance at the close of the month should
not be carried forward to the next month.
6.2.15. In the absence of a monthly limit on his drawings, the officer should
record on the reverse of the counterfoil of each cheque the amount of the next
cheque drawn and the total of the drawings during the month, and carry forward
their total to the next counterfoil, thus enabling himself, from time to time to exercise
an independent check on the postings in his cash book.
6.2.16. If the currency of a cheque should expire owing to its not being
presented at the treasury for payment within three months from the date of its issue
(vide Rule 249 of the Kerala Treasury Code, Volume I), it may be received back by
the drawer who should then destroy it and draw a new cheque in lieu of it. The
fact of the destruction and the number and date of the new cheque should be
recorded on the counterfoil of the old cheque, and the number and date of the cheque
that is destroyed should be entered on the counterfoil of the new one. The fact of
the new cheque having been issued should be entered on the date of issue in red
ink in the cash book but not in the column for payment, a note being made at the
same time against the original entry in the cash book.
CASH 31
6.2.17. When a Divisional Officer receives a report that a cheque drawn by
him is lost, he should at once report the fact to the Treasury Officer and request
him to stop payment of the cheque if it has not already been paid. The Treasury
Officer should at once search through the list of cheques paid and if he finds that
the cheque has not been cashed, take steps to stop payment. For this purpose a
board showing the particulars of lost cheques should be hung up before the clerk
concerned. The Treasury Officer should also send a certificate in the accompanying
form:—
“Certified that the cheque No………………………… dated …………… for
` ……………… reported by the Divisional Officer to have been drawn by him on
this treasury in favour of ………………… has not been paid and will not be paid if
presented hereafter.
Place………………… (Sd.)
Date…………………. (Treasury Officer)”
When a cheque drawn on the bank direct is lost, the Divisional Officer should
send the intimation of the loss of the cheque to the bank direct for similar action.
The bank should then send the Divisional officer (through the Treasury Officer)
the certificate prescribed in the sub Para above with suitable modifications. See
Note 2 to Rule 267 of Kerala Treasury Code, Volume I.
6.2.18. On receipt of the certificate from the Treasury Officer, the Divisional
Officer will issue another cheque in its place and follow the procedure prescribed
for renewal of time expired cheques.
6.2.19. When it is necessary to cancel a cheque, the cancellation should be
recorded on the counterfoil, and the cheque, if in the drawer’s possession, should
be destroyed. If the cheque is not in his possession, he should promptly request
the Treasury Officer to stop payment of the cheque and on ascertaining that
payment has been stopped, he should write back the entry in his cash book by
exhibiting the amount of the cheque as a minus figure on the payment side in the
“Bank or Treasury” column. A counter reference should be given in the cash book,
against the original to the second entry of the cheque.
6.2.20. A cheque remaining unpaid from any cause for twelve months from
the date of its issue should be cancelled and its amount written back in a similar
manner.
32 CASH
6.3. RECEIPT OF MONEY
(i) ACCOUNTS PROCEDURE

6.3.1. When money is received by a Government officer on behalf of
Government it should at once be brought to account in the cash book and a receipt
in K.P.W. Form 3 should invariably be granted to the payer. If however, the amount
be realized by recovery from a payment made on a bill or other voucher setting
forth full particulars of the deduction, a receipt should be granted only if specially
desired by the payer, but the fact of the recovery having been made by deduction
from the payment voucher should be clearly recorded on the receipt.
Note.—(1) Final acquaintance for private cheques and drafts on local banks accepted
under proper authority [vide Rule 90 (b) Kerala Treasury Code, Volume I]
should not be given to the payer until they have been cleared.
Note.—(2) Before an officer signs a receipt in K.P.W. Form 3 for cash actually
received by him, he should see that the receipt of the money has been
duly recorded in his cash book and in token of this check the entry in the
cash book should be initialled and dated at the same time.
Note.—(3) When the officer signing the receipts is in camp, but the cash book is at his
headquarters, the counterfoil of the receipt book should be compared
with the entry in the cash book on the next occasion when he sees the
cash book or when he returns to headquarters whichever is earlier, the
entry in the cash book being initialled and dated in the usual manner in
token of this check.
Note.—(4) The head clerk or cashier may, when specially authorized to do so by the
Divisional Officer, receive money at headquarters when the latter is in
cap. In such cases he should promptly issue a temporary receipt for the
cash actually received by him and should simultaneously enter the amount
in the cash book. Formal receipt in K.P.W. Form 3 in confirmation of the
temporary receipts should be issued duly signed by the Divisional or
Sub-divisional Officer immediately on the latter’s return to headquarters.
Before signing the formal receipt the Officer concerned should compare it
with the amount of the counterfoil of the temporary receipt and the corre-
sponding entry in the cash book and he should initial the counterfoil of
the temporary receipt and the entry in the cash book and enter the number
and date of the temporary receipt.
Note.—(5) Temporary receipts should be in K.P.W. Form 92. Temporary receipt books
should not be allowed to be in the custody of a head clerk or cashier
beyond the minimum period necessary and they should be kept in the
personal custody of the officer when he is at head quarters.
CASH 33
Note.—(6) As an exception to this rule in respect of cheque/bank drafts received in
settlement of interdivisional transactions, which bear the endorsement
“Payment by book adjustment only” it is not necessary to issue receipts in
Form 3, as the acknowledgement given (vide para 2 of Form No.4 referred
to in Appendix 8) will serve the purpose.
6.3.2. Cheques of private individuals if accepted in payment of Government
dues should be treated as cash, vide paragraph 6.1.1. and entered in the cash book
in the ordinary way just like other cash transactions. When they are sent to the Bank
for encashment, they should be shown in the disbursement column as “Remittances
into treasury”. In order, however to relieve the cash book of a large number of
detailed entries in cases in which the transactions of receipt of private cheques are
frequent and numerous the cheques may be initially entered in a “Register of
Cheques Received and Adjusted” in K.P.W. Form 1A and only the daily totals of
receipts and remittances entered in the cash book. This register will also facilitate
the watching of the clearance of the cheques.
Note.—The above procedure will also apply in respect of Deposit-at-call receipts of
scheduled Banks which are received, prior to the date fixed for opening of
tenders or which for any reason, cannot be returned on that date.
6.3.3. As an exception to the above rule, earnest money in legal tender notes
attached to tenders and returned to the contractors whose tenders are rejected on
the same day as the tenders are opened by the Divisional Officer need not pass
through the divisional accounts provided that the contractors concerned give a
stamped receipt for the money in the Register of Tenders in K.P.W. Form 90
maintained in the Divisional Office and that the register is to that extent treated as
a subsidiary cash book and consequently as an accounts Form. Earnest money which
is received prior to the date fixed for opening the tenders, or which for any reason
cannot be refunded on that date should be brought to account in the cash book
and returned subsequently to the contractors under the ordinary rules.
6.3.4. Receipt in K.P.W. Form 3 can be issued only by Divisional Officers,
Sub-divisional Officers or other Government Officers specially authorized by
Government, and all persons regularly or frequently receiving money on behalf of
Government should keep a cash book in K.P.W. Form 1.
6.3.5. When a Section Officer or other Government Officer who is not in-
charge of a cash book collects departmental revenue, he should not mix it up with
the imprest or any other cash in his charge, but should at the earliest opportunity
remit it to the Sub-divisional Officer or other nearer superior officer maintaining a
cash book. The cash should be accompanied by a remittance slip in K.P.W. Form
34 CASH
93 on the back of which the section officer should enter the full particulars of the
money realised by him with the date of its realisation. The Section Officer should
also send a copy of the remittance slip to the Divisional Officer for check of the
receipt entry which should appear in the copy of the sub-division or other cash
book. The record of the transaction will be in the correspondence and not in the
imprest account of the receiving officer.
*Note.— The cash collected by Canal Officers of the Public Work Department will be
promptly brought into account and remitted daily into the sub Treasury/
District Treasury Duplicate copies of entries made in the petty cash book
will be forwarded to the Sub-divisional Officers concerned together with
the chalan for incorporation of the remittances in the Sub-divisional ac-
counts at periodical intervals.
6.3.6. The Sub-divisional Officer should on receipt of the duplicate copy of
the remittance slip along with cash fill in the two forms of memorandum of
acknowledgement attached hereto, one intended to be sent to the section officer and
send the latter forthwith to the Section Officer along with a permanent receipt for
the amount received from him. If the memorandum of acknowledgement and the
permanent receipt and not received by the Section Officer within a week of his
sending the cash he should forthwith report the fact in writing to the Sub-divisional
Officer or other officer concerned by name and obtain them.
Note—1— The Section Officer or other Government Officer who receives money on
behalf of Government should promptly issue to the payer a temporary
receipt. A permanent receipt in K.P.W. Form 3 in confirmation of the
above temporary receipt should be issued to the payer by the sub-
divisional or other superior officer who has received the money and
brought to account in his cash book. The number and date of the temporary
as well as the permanent receipt should be recorded in the prescribed
columns of the cash book. The entries made in the cash book should be
initialled and dated by the Sub-divisional Officer at the same time—vide
paragraph.6.3.1. Above.
Note—2— A monthly statement of the receipt of the money giving reference to the
remittance slip, the temporary receipt, the amount collected etc., should
also be sent to the superior officer who should check it with the entries
in his cash book and take prompt and efficient action in regard to dis-
crepancies, if any. He should also verify if the number of temporary
receipt and remittance slips relating to the transactions in each section
*Substitution G.O. (P) 4243/78/Fin. dated 30-11 1978.
CASH 35
are continuous. If not he should enquire immediately what the missing
numbers pertain to and promptly take all necessary further action. When
the transaction is nil, a ‘nil’ statement should be sent. If the statement is
not received on the due date it will be the duty of the superior officer to
call for it.
(ii) DISPOSAL OF RECEIPTS
6.3.7. (a) Cash realised by the officer of the Department should be paid into
the nearest treasury for credit as miscellaneous receipt of the Department.
Remittances into treasury should be made in lump once a week, on the last working
day. Divisional/Sub-divisional Officers having large collections may, however make
more than one remittance in a week provided the amount of each such remittance
is for an amount not less than Rs. 500. This restriction does not apply to the
remittance referred to below made at the end of a month by self check and the
remittances of endorsed cheques as mentioned in Note 1. below Para 6.5.1.
Should a Divisional/Sub-divisional Officer, required to make use of cash receipts
temporarily for current expenditure, he may do so instead of obtaining fresh cash
by cheques; but before the end of the month he must send to the treasury a cheque
for the amount thus utilised, drawn in his own favour and endorsed by himself
with the words “Received payment by transfer credit to the Public Works
Department”.
Note—(1) This rule does not apply to receipts realised by short payment on bills or
other vouchers.
*Note—(2) “This rule does not apply to the Canal Officers of the Public Works
Department. The procedure for remittance to be followed by the Canal
Officers of the Public Works Department. Is as per Note under
Para 6.3.5.”.
(b) Parties who have to pay amounts into the accounts of the Divisional/
Sub-divisional Officer should be directed to pay by means of cheques/drafts drawn in
favour of the Divisional/Sub-divisional Officer, except in the case of petty amounts
which may be paid in cash. These should be receipted in the cash book and remitted
into the treasury in the manner indicated in (a) above.
* Addition : G.O. (P) 4243/78/Fin. dated 30-11-1978.

36 CASH
6.4. PAYMENTS
(i) MANNER OF PAYMENT

6.4.1. Officers authorized to draw cheques should, pay by cheques ; except
in cases where payments have to be made in cash either owing to the payments
being petty and under ten rupees or the nature of the payment, e.g., wages of
labourers and of establishment charged directly to works and value-payable
postage—vide paragraph 6.2.10.
*Note.—“It is permissible to make payments in cash in cases of payments made
outside the state, if the suppliers insist on such mode of payments and if
the amount payable does not exceed ` 100 at a time”.
6.4.2. It is permissible to make payments to suppliers of stores by obtaining
Reserve Bank Drafts from the district treasury in accordance with the rules.
Remittances for such purposes, for which Reserve Bank Drafts cannot be issued
by treasury officers, may be made by postal money order at the public expense.
6.4.3. All payments outside India should be made through the Accountant
General in accordance with the orders of Government issued from time to time.
6.4.4. As a rule no cheque should be drawn until it is intended to be paid
away and cheques drawn in favour of contractors and others should be made over
to them by the disburser direct; but the disburser may be assisted in making
disbursements by a cashier appointed for the purpose under paragraph 290 of the
Kerala Public Works Department Code. The occasional delivery of cheques through
a subordinate may be permitted at the discretion and on the responsibility of the
disburser. In such cases the subordinate should make no entry in any account
which he keeps, as a payment made by cheque should appear in the cash account
of the disbursing officer who draws the cheque and the subordinate’s record will
be in his correspondence.
Note.—It is a serious irregularity to draw cheques and deposit them in the cash chest
at the close of the year for the purpose of showing the full amount of grant as
utilised.
6.4.5. Payments due to contractors may be made to their banks instead of
direct to contractors provided that the Department obtains (i) an authorisation from
the contractor in the form of a legally valid document like a power of attorney or
transfer deed conferring authority on the bank to receive payment, and (ii) the
contractor’s own acceptance of the correctness of the account made out as being
due to him by Government or his signature on the bill or other claim preferred against
Government before settlement of the account or claim by payment to the bank. While
*Insertion: G.O. (P) 72/76/Fin. dated 2-3-1976.
CASH 37
the receipt given by the bank holding a power of attorney or transfer deed from the
contractor constitutes a full and sufficient discharge for the
payment, contractors should wherever possible, be induced to present their bill
duly receipted and discharged through their bankers.
(ii) PROHIBITORY ORDERS, INJUNCTIONS
6.4.6. When money due to a contractor or other creditors is attached by a

prohibitory order of a court and is afterwards paid into that court, the receipt (to be
prepared by the Public Works Department) signed by the court should show that
the payment is on account of an attached debt and should set forth inter alia, the
name and capacity of the actual creditor to whom the money is due by the department
on what account it is due , and the number and date of the court’s order in accordance
with which the payment is made. This receipt should be attached to the contract
certificate or other bill in which the particulars of the creditor’s claim are recorded
and should be enfaced in red ink by a reference to that bill, the bill being
correspondingly enfaced by a reference to the attached receipt of the court.
(iii) BILLS
6.4.7. General instructions regarding the form of bills and their preparation,
completion, etc., are laid down in Chapter I, Part V of the Kerala Treasury Code,
Volume I. The special forms of bills for use in the Public Works Department are
prescribed in paragraphs 10.2.16. and 11.5.1. As far as possible these forms should
be used by contractors and suppliers of stores but bills not prepared on such forms
should not be rejected if they set forth the necessary details of the claims. In such
cases the additional particulars required should be added by the disbursing officer.
(iv) VOUCHERS
6.4.8. As a general rule, every payment including repayment of money
previously lodged with Government for whatever purpose must be supported by a
voucher setting forth full and clear particulars of the claim and all information
necessary for its proper classification and identification in the accounts. The full
name of the work as given in the estimate or the head of account to which the
charge admitted in a voucher are debitable or to which the deductions or other
credits shown in the voucher are creditable, should be clearly indicated on it in the
space provided for the purpose or in some prominent position.
38 CASH
Note.—When it is not possible to support a payment by a voucher or by the payee’s

receipt , a certificate of payment prepared in manuscript signed by the dis-
bursing officer, and countersigned, if necessary by his superior officer, should
always be placed on record and submitted to the Accountant General where
necessary. Full particulars of the claims should invariably be set forth, and
where this necessitates the use of regular bill form, the certificate itself may
be recorded thereon.
6.4.9. Every voucher must bear a pay order signed or initialled and dated by
the responsible disbursing officer. This order should specify the amount payable
both in words and figures.
Note.—Cashiers and others authorised to make disbursements on passed vouchers,
vide paragraph 6.4.4., should make no payment without a proper pay order of
the responsible disbursing officer recorded clearly in ink on the bill or other
voucher. No payment should be made on a voucher or order unless it is signed
by hand and in ink.
6.4.10. Except as provided in paragraph 6.4.5. every voucher should also bear,
or have attached to it, an acknowledgment of the payment signed by the person by
whom or in whose behalf the claim is put forward. This acknowledgment should
always be taken at the time of the payment. When the payee signs in an Indian
script he should be required to note the amount acknowledged in the script in his
own hand-writing. In transliterating his acknowledgment the amount acknowledged
as well as any remark made by him should also be reproduced in English.
6.4.11. If a disbursing officer anticipates any difficulty in obtaining from the
person to whom money is due, a receipt in the proper form, it is open to him to
decline to hand him the cheque or cash, or to make a remittance to him, as the case
may be, until the acknowledgement of the payment with all necessaries particulars,
has been given by him. In all cases of payment by remittance, a note of the date
and mode of remittance must be made on the bill or voucher at the time of remittance.
In cases of remittance by postal money order, the purpose of the remittance should
be briefly stated in the acknowledgement portion thereof—vide Rule 430 (c) Part
VII of the Kerala Treasury Code, Volume I .
6.4.12. In the case of articles received by value-payable post the value-payable
cover together with the invoice or bill showing the details of the items paid for may
be accepted as a voucher. The disbursing officers should endorse a not on the
cover to the effect that the payment was made through the post and this will also
cover charges for the postal commission.
CASH 39
6.4.13. A certified copy (marked duplicate) of a receipted voucher may be
retained by the disbursing officer should this be necessary to complete the record
of his office, but the payee should not be required to sign such a copy or give a
duplicate acknowledgement of the payment.
6.4.14. When a bill submitted by a contractor/supplier for supplies made to

Government is endorsed in favour of a bank, payment may be made to the bank
only if the bill is receipted by the contractor/supplier and endorsed in favour of the
bank.
6.4.15. To ensure the genuineness of the contractor’s/supplier’s signature in

both (1) the receipt and (2) the request to pay the amount to a bank, the disbursing
officer concerned should call for the specimen signature of the contractor or supplier
or his agent who may be authorised to receive payment on his behalf, the signature
in the case of an agent being also required to be attested by the contractor or supplier.
The disbursing officer should satisfy himself that the signature both on the receipt
and on the request to pay the amount to the bank is genuine, by comparing it with
the specimen signature obtained separately before payment is actually made.
6.4.16. General instructions regarding the preparation and completion of

vouchers are given in Rule 163 of the Kerala Treasury Code, Volume I.
6.4.17. When vouchers or accounts exhibit any expenditure from which

revenue may prima facie be expected to accrue as, for instance, when payment
appears in a bill for removing material from a building or other work, either dismantled
or undergoing repairs or for clearing jungle or cutting trees in the compound of
buildings or in canal banks, etc., the necessary information should be given in the
account of voucher concerned as to how the old materials removed or the trees cut
have been disposed of, and if sold, when the sale amount will be credited in the
accounts.
6.4.18. All vouchers for expenditure should, in such cases, invariably bear a
note by the Divisional Officer, as to whether the timber, etc., has a saleable value,
and if so, by what approximate date the value will be credited in the accounts after
realisation by auction, etc.
6.4.19. Bills received from firms for supply of stores should be dealt with in
original and submitted to the Accountant General as vouchers.
40 CASH
6.5. REMITTANCES TO TREASURIES
6.5.1. The officer in charge of a cash book should keep a book in K.P.W. Form
4 in which he should enter all his remittances to the treasury as they are made—
vide paragraph 6.3.1. This book should accompany the cash.
Note.—(1) Remittances made to the Bank of cheques paid in as Public Works receipt
should be entered in the Remittance Book but in the place for the treasury
receipt should be entered, “By Bank Cheques” and even then the book
should accompany the cheque, so that the treasury may give a prelimi-
nary acknowledgement for the receipt of the cheque in the book. The
final receipt will be given by the treasury after the cheque is cleared.
Note.—(2) All payments of miscellaneous receipts made by Public Works Officers
into treasuries, whether acknowledged or not by the Treasury Officer in
the same month, should be debited to the civil department as payment
into treasuries. Differences, if any, between the amount debited and that
acknowledged by the Treasury Officer should on no account be charged
to a suspense head pending adjustment.
6.6. CASH ACCOUNTS
1. CASH BOOKS
(A) UPKEEP
6.6.1. An account of their cash transactions should be maintained in the Cash
Book K.P.W. Form I by all Government Officers, authorised as a regular arrangement,
to receive money on behalf of Government as well as by those entrusted with making
disbursements out of cash received by them in transfer from the divisional cash
chest or obtained by drawing cheques on the treasury. Government Officers
entrusted with fixed imprests or temporary advances should maintain and render
accounts of their disbursements in Imprest Cash Account. K.P.W. Form 2.
6.6.2. The cash book is one of the most important account records of the
Department. The detailed instructions prescribed for writing it up are given in the
notes on K.P.W. Form I, and disbursing officers are required to observe them in
strictly in practice.
CASH 41
(B) BALANCING
6.6.3. The cash book must be balanced on closing the cash accounts of the
month, but when the transactions are numerous a weekly or even a daily balance is
recommended, and it is advisable to count the cash whenever a balance is struck
or at convenient intervals, as this affords an independent cheque on the accuracy
of the postings. The results of such intermediate counting should be recorded in
the form of a note specifying the actual cash and also the outstanding balances of
imprests and temporary advances in the body of the cash book (column 8) so as
not to interfere with the up-to-date a totals; the actual balance of cash in the chest
should invariably be stated in the note both in words and figures.
(C) RECTIFICATION OF ERRORS
6.6.4. An erasure of an entry once made in the cash book is strictly prohibited.
If a mistake has been made and it is discovered before the copy of the cash book
has been submitted to the Divisional Office, the mistake should be corrected by
drawing the pen through the incorrect entry and inserting the correct one in red ink
between the lines. The disbursing officer should initial every such correction and
invariably date his initials. When the mistake is discovered too late for correction
in this way, an intimation of the necessary correction should at once be sent to the
Divisional Office, accompanied by a proposed transfer entry, if necessary. Except
as indicate above, no correction of an entry, once made in his cash book should be
made by a Sub-divisional Officer, unless authorised by the Divisional Office to do
so.
Note.—The same principles should be observed in correcting errors noticed in the
divisional cash book. If the accounts of the month have been closed, no
corrections of error in amount, classification, or name of work should be made
in that book but a transfer entry should be prepared for effecting the correc-
tion and a suitable remark in red ink (quoting reference to the correction in
accounts) should be recorded against the original erroneous entry in the cash
book.
(D) VERIFICATION
6.6.5. The disbursing officer is required to check all the entries in his cash
book as soon as possible after the date of their occurrence and he should initial
the book, dating his initials after the last entry checked. The cash book should be
signed by him at the end of the month and such signature should be understood
as fixing responsibility for all the entries of the month inclusive of the closing
balance.
42 CASH
6.6.6. The following is the memorandum of some of the more important parts
of the verification :—
The disbursing officer should —
(1) compare each entry of payment with the gross amount chargeable as
shown in the connected voucher, seeing, at the same time, that it bears (i) a payment
order recorded by himself or the Divisional Officer, and (ii) the certificate of disburse-
ment signed by himself or an authorised subordinate and ticking off each voucher as
it is passed;
(2) see, whilst examining the postings of vouchers on the payment side, that
all deductions shown in the vouchers (other than deductions creditable to the head of
account or work to which the payment relates) are posted as receipts on the receipt
side of the cash book;
(3) compare each entry of payment into the treasury with the Treasury
Officer’s receipt on the chalan or his passbook and satisfy himself that the amounts
have been actually credited into the treasury;
(4) Verify the totalling of the cash book or have this done by some principal
subordinate (other than the writer of the cash book) who should initial (and date) it as
correct; and
(5) Verify the total of the postings in the “Bank or Treasury” column on the
payment side by reference to the memoranda recorded by himself on reverse of the
counterfoils of cheques.
6.6.7. The actual balance of cash in each chest should be counted on the last
working day of each month (i.e., immediately after closing the cash account of the
month under paragraph 6.6.3.), but where this is not possible, the cash balance may
be counted on the first working day of the following month before any disbursement
is made on that date. A statement of the details of the actual balance should be
prepared in K.P.W. Form 5 and a certificate of the count of cash, specifying both
in words and figures the actual cash balance (exclusive of imprests and temporary
advances), should be recorded below the closing entries in the previous month’s
cash book. This certificate should be signed by the disbursing officer who should
invariably date his signature.
Note.—Should it not be possible for the disbursing officer, owing to his absence, to
make the count on the date prescribed in this paragraph, he should do so at
the earliest opportunity, recording the reason for the delay on the Cash Balance
Report.
CASH 43
6.6.8. Whenever, on the contents of the cash chest being counted the balance
as per cash-book is found to be in-correct, it must, unless the error can be detected
and set right at once, under paragraph 6.6.4., be rectified forthwith by making the
necessary receipt or payment entry— “To cash found surplus in chest”—under
“Deposits”, or “By cash found deficient in chest”- under “Miscellaneous Public
Works Advances”, as the case may be. The administrative action to be taken on the
occurrence of a deficiency must depend on the nature of each case.
Note.—Actual losses of cash by theft or otherwise, and irrecoverable personal ad-
vances in cases where the persons to whom the advances were made are no
longer in the service of Government are to be charged to “Establishment”,
sub-head “Contingencies”.
2. IMPREST
6.6.9. An impress is a standing advance of a fixed sum of money given to an

individual to enable him to make certain classes of disbursements which may be
entrusted to his charge by the Divisional Officer or the Sub-divisional Officer in
accordance with such rules and subject to such restrictions as may be laid down by
the Government. The amount of an imprest should not, however, exceed five
hundred rupees, in any case, without the special sanction of Government.
6.6.10. (i) Petty bills, except nominal muster roll and work establishment bill,
not exceeding ` 75 may be paid out of imprest.
(ii) Sub-divisional Officers may authorise payment of passed nominal
muster roll up to a limit of ` 10 by section Officers from their imprest.
6.6.11. The imprest Cash Account, K.P.W. Form 2 is printed so as to facilitate copies
being taken by carbon process. The first sheet should be retained by the imprest-holder
and the detachable sheet, supported by the necessary vouchers, should be forwarded
to the officer from whom the imprest is held whenever the imprest-holder finds it
necessary to have the amount recouped, or it is proposed to increase or decrease the
amount of the imprest or to close the account altogether. The account must, in any
case, be closed at the end of each month and rendered so as to reach the officer from
whom the imprest is held, in time to enable him to corporate the account in his cash
book before it is closed for the month on the date fixed for the purpose.
6.6.12. The recouping officer should examine the imprest cash account and
the supporting vouchers, initial and date the vouchers in token of approval, and
by a formal pay order vide paragraph 6.4.9. recorded on the account, authorise the
recoupment, enhancement, reduction or closing of the imprest, as the case may be.
The account should then be abstracted and incorporated in the cash book in the
manner prescribed in notes on K.P.W. Forms 1 and 2.
44 CASH
Note.—(1) A Sub-divisional Officer can authorise temporary reduction and recoup-

ment of the imprests held by the sub-ordinates in his sub-division, but
the enhancement permanent reduction or closing of the accounts must be
sanctioned by the Divisional Officer.
Note.—(2) Should any item in an imprest account appear to the recouping officer to
be open to objection, the imprest should nevertheless be recouped in
full, and the item under objection should be classified under the head
“Miscellaneous P.W Advances” for watch under that head until either
the objection is removed or the amount is made good by the imprest –
holder. All objections in respect of such disallowed amounts should be
settled within a maximum period of three months.
6.6.13. The imprest-holder is responsible for the safe custody of imprest money
and he must at all times be ready to produce the total amount of the imprest in
vouchers or in cash.
3. TEMPORARY ADVANCE
6.6.14. When a disbursing officer makes a remittance to a subordinate officer

to enable him to make a number of specific petty payments on a muster roll or other
voucher which has already been passed for payment the amount remitted should
be treated as a temporary advance and accounted for in the same way as an imprest.
When more than one temporary advance is given to an officer the accounts of each
of these advances should be distinct and rendered separately. The unspent balance,
if any, should be remitted back to the disbursing officer after the expiry of a period
of three months and suitable adjustments made in the accounts. The account of a
temporary advance should be closed as soon as possible.
Note.—1. This rule applies also to cash taken out of the chest by the disbursing
officer himself for making payments at a distance.
Note.—2. Sub-divisional officers may authorise payment of passed nominal muster
rolls up to limit of ` 10 by Section Officers from their imprest.
Note.—3. Reasons for the delay in clearing temporary advances outstanding in the
cash accounts of the second preceding month should be given by the
Divisional Officers in the “Certificate of Cash Balance” on the back of
the “Monthly Account”. For this purpose the Sub-divisional Officers
should explain such delays in respect of such items in column 3 of the
Cash Balance Report furnished by them during the month.
CASH 45
6.7. CHEQUE BOOKS AND RECEIPT BOOKS
6.7.1. The Treasury Officers will arrange with the superintendent of

Government Presses for the printing of cheque books required by the Public Works
Department. The Divisional Officer should intimate the Treasury Officer from time
to time the requirements of his division and of the sub-divisions under his control.
The Divisional Officer or Sub-divisional Officer who requires a fresh cheque book
should sign the printed requisition form inserted towards the end of each cheque
book and sent it to the Treasury Officer.
The Divisional Officer should obtain the receipt books from the Superintendent
of Government presses. He should also supply the required number of receipt books
to the Sub-divisional Officers from his stock of such books.
6.7.2. Every cheque book or receipt book should be carefully examined by
the Divisional or the Sub-divisional Officer concerned immediately on receipt. The
officer should, then count the number of forms in each book and record a certificate
of count on the fly-leaf. In the case of books issued to the Sub-divisional Officers
by the Divisional Officer, the certificate of the latter on the fly-leaf will not dispense
with the examination of the books on their receipt by the former. The Sub-divisional
Officer should make a fresh count in such cases and record a certificate of count
again on the fly-leaf as soon as the books come into his hands.
6.7.3. All cheque and receipt books received in a division or sub-division
should be entered in a Register of Cheques (and Receipt Books) maintained in
K.P.W. Form 49, separate pages being reserved for cheque books and receipt books.
6.7.4. Each cheque book must be kept under lock and key in the personal
custody of the drawing officer who when relieved shall take a receipt for the exact
number of cheques made over to the relieving officer.
6.7.5. The loss of cheque book or a blank cheque shall be notified promptly
to the Treasury Officer with whom the disbursing officer concerned has a drawing
account.
6.7.6. Treasury Officers are required to furnish to the Divisional Officer
quarterly, a statement of cheque books supplied by them to all disbursing officers
of the division on their requisition. The statement should on receipt be compared
with the register of cheque books to see that books are not obtained by disbursing
officers unnecessarily in advance or in excess of requirements and the numbers of
the books supplied but not brought into use have been entered in the register, the
date of supply being noted in red ink below the entries in column I.
46 CASH
6.7.7. The register of cheque (and receipt) books should be reviewed

periodically and enquiry should be made of the disbursing officer concerned if there
is any unusual delay on his part in bringing a book into use. Even if the cause of
the delay is known it will be found advisable to obtain an assurance from the
disbursing officer that the book is in his personal custody and contains the full
number of forms intact.
6.7.8. (a) Whenever on examining a cash book it is noticed that a cheque
book or receipt book has been brought into use for the first time, the Divisional
Accountant should enter it at once in the register as a new item. At the same time
the date on which the corresponding book previously in use was completely written
up should be ascertained from the cash book and noted in column 4 of the register
against the original entry relating to that book.
(b) The submission of the counterfoils of used cheque and receipt books
for record in the divisional office—vide paragraph 6.7.9. should be watched through
this register, and as soon as the counterfoils are received they should be examined and
it should be seen in particular, (i) that all items for which receipts were issued were duly
brought to account in the cash book, and (ii) that the writings do not indicate any
irregularity or disregard of rules requiring action on the part of the Divisional Officer.
6.7.9. Counterfoils of used cheque books should be returned promptly to the
Divisional Officer for record in his office but those of completed receipt books
should be sent back to the Sub-divisional Officer, after their check in the Divisional
Office . The Sub-divisional Officer should keep them in some safe or box the key
of which remains in his personal custody.
6.7.10. The manner in which wholly unused and partly used receipt books of
a closing division/sub-division should be dealt with, has been laid down in Para
23.2.2. (4) below.
STORES 47
CHAPTER–7
STORES
7.1. INTRODUCTORY
7.1.1. The general administration of all the stores of the department is
vested in the Chief Engineer, who will be assisted at the headquarters’ office by
* Deputy Chief Engineer, Stores and Purchase on whom primarily devolves the
duty of arranging, in accordance with rules, for purchase and utilisation of stores,
stores supervision and management, inventory control and stores verification.
There will be one store for each District known as the District Store to
serve the requirements of the Divisions (Irrigation and Buildings and Roads
branches of the Public Works Department) within the District. Each District
Store will be under the immediate charge of a Junior Engineer who is the
custodian of the Stores and under the overall charge of an Assistant Engineer
(Stores Officer). The Assistant Engineer (Stores Officer) shall make payments for
purchase of stores on the basis of rates fixed and purchase orders placed by the
Chief Engineer and shall render accounts to the Accountant General.
Note.—In respect of Project Divisions etc., however, the general administration of all
the stores is vested in the Divisional Officer of the Division concerned.
7.1.2. Government officers entrusted with the care, use or consumption of
stores, are responsible for maintaining correct records and preparing correct
returns in respect of the stores entrusted to them. The Divisional Officer should
see that the responsibility is discharged promptly and regularly as far as the
Stores and the store accounts of his Division are concerned.
7.1.3. All transactions of receipts and issues should be recorded strictly in

accordance with the rules, in the order of occurrence and as soon as they take
place. Fictitious stock adjustments are strictly prohibited, such, for example, as
(1) the debiting to a work of the cost of materials not required, or in excess of
actual requirements, (2) the debiting to a particular work for which funds are
available of the value of materials intended to be utilised on another work for
which no funds are available, (3) the writing back of the value of materials used
on a work to avoid excess outlay over appropriation, etc. Any breach of this rule
constitutes a serious irregularity, which will be brought prominently to the notice
of Government by the Accountant General.
Note.—In addition to the initial and basic records herein after described, a Day Book
of Receipts and Issues should also be kept in the store. This should not in
any way affect the maintenance of the primary initial records prescribed by
these rules.
*Substitution G.O. (P) 745/87/Fin. dated 18-9-1987.
48 STORES
7.1.4. (a) The accounts of stores are based on the fundamental principle
that the cost of their acquisition should be debited to the final head of account
concerned or the particular work for which they are required, if either of these
can be determined at once; otherwise it should be kept in a suspense account
pending clearance, as the materials are actually issued, by charge to specific
heads of account or works.
(b) In accordance with this general rule, the cost of the supply of all
stores required as tools and plant for the general use of the division, is debited at once
to the minor head “Tools and Plant”, subordinate to the major head under which such
charges of the division are classified ; and special items of tools and plant which are
required not for general purposes but for a specific work are charged off to that
work—See also rules 1 and 4 of Appendix 2 to Kerala Account Code, vol.III.
Exception.—Tools and Plant held in the District Stores of the P.W.D; will be held as
part of stock and will be accounted for as such, as they are intended for
issue to other divisions and departments. When so transferred, the
division receiving them will deal with them as in the rules in
paragraph 7.2.4.
(c) Similarly, all road-metal required for the maintenance of a road or
section of a road is charged at once to the minor head “Repairs” (Communications)
under the major head concerned, against the estimate sanctioned for the collection of
it, and when road-metal is acquired specially for use in the construction of a road or
other work, its cost is debited to the estimate for such construction
Note:—Coaltar, pitch, asphalt, and other road surfacing material required for
maintenance estimates and for minor estimates for renewal should be accounted
for in the same way as road metal required for maintenance of road.
(d) In the case of other materials, when purchase are made for requirements
of works generally, the cost is accounted for under the suspense head, “Stock”.
Material purchased specially for a work are however, charged to that work.
7.1.5. The four classes of stores enumerated in paragraph 294 of the
Kerala Public Works Department Code thus fall into two distinct categories as
shown below:—
(1) Stores debited to suspense — (i) Stock
(2) Stores debited to final heads — (ii) Tools and plant
(except those in P.W. District Stores)
— (iii) Road-metal
— (iv) Materials charged to works
STORES 49
7.1.6. A numerical or quantity account of receipts, issues and balances has
to be maintained for all stores, even though debited to final heads with a view
to control the balances efficiently until the stores are finally disposed of either
by consumption on works or otherwise. This quantity account has further to be
reconciled periodically with the value accounts in the case of stores debited to
suspense “Stock”. The rules in this chapter are framed on the principle that, as
far as possible, the initial records of all stores, as also the returns. Sub-divisions
should take account of quantities only and that the value accounts should be
maintained in the Division Office.
7.2. STOCK
I. GENERAL
7.2.1. The stock of a division (including the District Stores) is sometimes

kept in a single godown or yard in the charge of a Junior Engineer or other
Officer, or each Sub-divisional Officer may have a separate stock in his charge,
either at his headquarters or scattered over the sub-division in the direct custody
of subordinates or other sectional officers. Again, the stock, although scattered
over the entire division, may be in the general charge of a single official and the
Sub-divisional Officers may merely indent upon him the accounts being kept by
the former. The rules prescribed below will apply whatever be the arrangement in
force in the division.
Note.—The Divisions, other than project Divisions of the Irrigation and Buildings
and Roads Branches of the Public Works Department shall obtain supply of
stores for specific works only and shall not operate on the suspense head
“Stock” unless any manufacture operations are under-taken. The District
Stores will operate on the suspense head ‘Stock’ for all the Stores supplied to
them.
7.2.2. The Officer-in-charge of a Sub-division who is not authorised to
keep a cash account in Form 1 when permitted to operate on the suspense head
‘Stock’ should maintain accounts for the stock held by him in the manner
prescribed in these rules.
A separate account should be kept in the Divisional Office of any stock
which is directly under the charge of the Divisional Officer or of an Officer
under his orders when the regular stores of the Division is under the control of
a sub-division under it.
50 STORES
II. PRICED VOCABULARY OF STORES
7.2.3. In order to ensure accuracy of posting of all transactions and

facilitate the preparation and valuation of indents, a list of materials in stock
showing the correct description and permanent identifying numbers (commonly
known as priced vocabulary of stores), should be evolved on the basis of an
up-to-date classification of stores which should be uniformly adopted throughout
the Department and which should not be altered while introducing new items.
The issue rate should be filled in by the divisions concerned who should
circulate them for use by other divisions obtaining supply of stores from them.
These vocabularies should be kept up-to-date by issue of corrections, as and
when necessary, to include fresh items in the list of materials without altering the
existing classification and to circularise the changes in the issue rates.
III. QUANTITY ACCOUNTS
(a) RECEIPTS
7.2.4. Materials may be received on stock from the following sources:—
(a) Suppliers.
(b) Other sub-divisions, divisions, or departments (including Government
Workshops).
(c) Manufacture.
(d) Works, buildings, etc.
In all cases there should be proper authority for the receipt by the Junior
Engineer or other Officer concerned of materials to be bought on stock. This
authority should be given in writing by the Divisional Officer or, if so
authorised under the Divisional Officer’s orders by the Sub-divisional Officer.
7.2.5. All materials received should be examined and counted or measured
or weighed as the case may be, when delivery is taken. The record of the
detailed count or measurement or weighment should be kept in the Goods
Received Sheets, K.P.W. Form 7A and the total number or quantity received
should be entered in the Bin Card, K.P.W. Form 7 immediately thereafter. Such
acknowledgment as may have to be given to a supplier for stores received from
him can be signed only by the Divisional or the Sub-divisional Officer.
Any certificate that the Junior Engineer or other Officer concerned may be
called upon to record in respect of the receipts of store should be in the following
form:—
STORES 51
Received on…………………………………and duly recorded in the Bin Card.
See Goods Received Sheet No……………………….
Date: Signature.
7.2.6. The Goods Received Sheets will be printed in the form of booklets
and will be machine-numbered with the office copy intact and others perforated.
They will be prepared in triplicate (in quadruplicate if payments are made by the
Sub-divisional Officer) by carbon process in indelible ink or copying pencil, one
copy being retained by the Junior Engineer or other officer concerned and the
other two sent to the Sub-divisional Office, out of which one copy will be
passed. On to the supplier and the other to the Divisional Office for posting the
Priced Stores Ledger and making payments.
Note.—1. Two types of booklets will be printed, one containing three copies of each
Goods Received Sheet and the other containing four copies. The words
‘original’, ‘duplicate’, ‘triplicate’, ‘quadruplicate’ should be printed on
them.
Note.—2. The instructions regarding the making of entries in the Measurement
Books—vide paragraph 10.2.9 and 10.2.11.—apply mutatis mutandis to
the entries to be recorded in the Goods Received Sheets.
Note.—3. The Divisional Officer should ensure that copies of all the Goods Received
Sheets have been received and call for missing ones, if any. They should
then be arranged in chronological order and bound in volumes of conve-
nient sizes.
7.2.7. A separate Goods Received Sheet should be prepared in respect of
goods purchased from one supplier. Separate Goods Received Sheets should be
prepared in respect of items falling under each sub-head of stock or the articles
under each sub-head grouped together in the sheets as far as possible facilitating
the preparation of the summary of Stock Receipts. The description and code
numbers of materials as given in the Priced Vocabulary of Stores should be
strictly adopted in the Goods Received Sheets.
Note.—In order to comply with the requirements of the above paragraph it should be
seen that separate supply orders are placed for goods falling under each sub-
head of ‘stock’ as far as possible.
7.2.8. Payments for all stock received are made on the basis of entries in
the Goods Received Sheets—vide paragraph 7.2.16. These sheets should,
therefore, be treated as very important account records. All the booklets
52 STORES
containing the Goods Received Sheets should be numbered serially and a

register of them should be maintained in K.P.W. Form 11 A in the Divisional
Office showing the date of issue, serial number of each booklet, to whom issued
and the date of return of used booklets with office copies, so that its eventual
return to the Divisional Office may be watched.
Note.— A similar register should also be maintained in the Sub-divisional Office, `
wherever necessary. Those no longer in use should be withdrawn promptly
even though not completely written up.
(b) ISSUES
7.2.9. Materials may be issued from stock for the following purposes:—
(a) For use on works either by issue to contractors or direct (paragraph
10.3.1.).
(b) For despatch to the other sub-divisions, divisions or departments.
(c) For sale to contractors, employees or other persons or local bodies with
the sanction of the authority competent to order such sale — vide paragraph 306 of
Kerala Public Works Department Code.
They should be issued only on receipt of an indent in K.P.W. Form 6
signed by the Divisional or the Sub-divisional Officer. But when a Sectional
Officer has to issue stock materials for the requirements of works under himself
the use of this form is not obligatory, if the Sectional Officer has been
authorised under the Divisional Officer’s orders to draw such materials from his
stock upto any assigned limit not exceeding the provision made for materials in
sanctioned estimates.
Note.—1. When examining Bin Cards and Works Abstracts Divisional Officers
should see that in practice this rule is observed strictly and they should
deal suitably with instances of unauthorised and excessive issues to
works made by Sectional Officers without due cause.
Note.—2. The term “Works” includes manufacture operations—vide paragraph
2.1.1. (56) and Note under paragraph 7.2.30.
7.2.10. Indents will be printed in the form of booklets and will be machine-
numbered. They should be serially numbered and the issue and the return of the
Form watched through the Register in K.P.W. Form 11 (a)—vide also paragraph
7.2.8.
STORES 53
Indents should be prepared in quintuplicate by carbon process, the
description of stores etc., being filled in with reference to the priced vocabulary
of stores referred to in paragraph 7.2.3. A record of the stores indented should
be simultaneously kept in the Register of Indents—K.P.W. Form 6A.
The first four copies marked ‘original’, ‘duplicate’, etc. should be forwarded
to the supplying division and the last copy retained as office copy of the
indenting division.
Indents should be filled up carefully as all subsequent accounting depends
upon it. In the column “Head of Account etc”. besides entering the name of
the account head to which the issue of stores is chargeable, full names of
divisions and offices to which stock is to be issued and of contractors,
employees, other persons or local bodies to whom it is authorised to be sold,
should be added in all cases in which stores are ordered to be issued otherwise
than for the requirements of works within the division. The column, headed
‘Name of work/job’ should be filled in only when the stores are required for
works within the division, and in such cases the full name of the work as given
in the estimate should be entered as well as the name of the contractor from
whom the value is recoverable—vide paragraph 10.3.6.
Note.— In order to facilitate the preparation of the Summary of Indents separate
indents should be prepared for item falling under each sub-head of stock
or the articles under each sub-head of stock should be grouped together
in the indent as far as possible.
7.2.11. The Junior Engineer or other officer concerned of the supplying
division should examine the indent in K.P.W. Form 6 at the time of issue of
materials, enter the quantity issued in all the four copies and sign the indent in
the space provided for the purpose. The signature of the officer receiving the
materials should be obtained in all the copies in the space provided for in the
indent. An entry of the stores issued should simultaneously be made in the Bin
Card—K.P.W. Form 7 and a copy of the indent should be retained as a voucher
in support of the entry. The second copy of the indent should be returned at
once to the indenting officer. The third and fourth copies should be sent to the
Divisional Office for further action.
Note.—1. It should be seen that the acknowledgement of materials is signed either by
the person to whom they are ordered to be delivered or despatched, or by a
duly authorised agent. This precaution is specially necessary in the case of
issues to contractors and private persons whose acknowledgements should
set forth all the particulars mentioned in paragraph 10.3.6.
54 STORES
Note.— 2. Note 1 applies also to issues made to contractors by the Sectional Officer
himself without the production of an indent signed by higher authority—
vide paragraph 7.2.9.
(c) BIN CARDS
7.2.12. A chronological record of receipts, issues and the running balance of

each article of stock will be kept in the Bin Card K.P.W. Form No.7 which will
be kept at the place where the materials are stored. These cards will be posted
from the Goods Received Sheets and the Stores Indents by the custodian of the
stores (Junior Engineer or Store-keeper as the case may be) in the order of
occurrence and as and when the transactions take place—vide paragraphs
7.2.5.and 7.2.11.
7.2.13. As Bin Cards constitute the basic quantity record of stock
transactions, adequate care should be taken for their proper maintenance and safe
custody. All the Bin Cards should be serially numbered and a register of them
should be maintained in the Divisional Office in K.P.W. Form 11 B.
7.2.14. The Divisional Officer should arrange to have the balances as per
Bin Cards verified periodically with those shown in the Priced Stores Ledger.
This verification should in any case be conducted before any item is taken up
for physical verification.
7.2.15. As soon as a Bin Card is completed, it should be returned to the
Divisional Office after carrying over the balance to the new card. On receipt, the
entries of the completed cards and the corresponding entries in Priced Stores
Ledger should be checked in the Divisional Office and discrepancies, if any,
pointed out to the Junior Engineer or other officer concerned for further action.
The Bin Cards should then be recorded in the Divisional Office after entering the
date of return in column 7 of the register of Bin Cards.
IV. VALUE ACCOUNTS
(A) PAYMENT FOR STOCK RECEIVED
7.2.16. The payments of bills of suppliers for stock received are made in
accordance with the provisions for payments to contractors for work done—vide
paragraphs 10.2.1. and 10.2.16. to 10.2.30. with the exception that the claims are
verified in the Divisional/Sub-divisional Office concerned with reference to the
connected entries in the Goods Received Sheet—vide paragraph 7.2.6.
STORES 55
7.2.17. The claims for stock received from other Divisions including the
Divisions of other Governments will be settled in accordance with the procedure
prescribed in Appendix 8.
7.2.18. Cash payment should not be made for stock received from other
sources except in accordance with the rules in Chapter 4 of Kerala Account
Code, Volume I. When under those rules payment for supplies made by any
department is made in cash, the claims of such department should be dealt with
in the same way as those of suppliers. In other cases, the necessary adjustment
of the cost, through the remittance or other head concerned should be made by
the Divisional Office in accordance with the instructions in Chapters 8 and 18
and after verifying the claim with reference to the entries in the Divisional copy
of the Goods Received Sheet.
(b) Recoveries for stock issued
(i) ISSUE RATES
7.2.19. An Issue Rate is assigned to each new article as it is brought on

stock. This rate is fixed on the principle that the cost to be charged to works on
which the materials are to be used should approximately equal the actual cost of
the stores and that there may be no ultimate profit or loss in the stock
accounts. It should provide beyond the original price paid, for carriage and
other incidental charges actually incurred on the acquisition of stores and
storage charges as defined in paragraph 2.1.1.(47)
Note.—1. It is not necessary that the Issue Rate for an item should be the same in all
Divisions/District Stores but a uniform rate should ordinarily be prescribed
for all localities in a division/district.
Note.—2. Issue rates should be worked out to the nearest multiple of five paise,
fractions of 2.5 paise and below being ignored and fractions of more than
2.5 paise taken as five paise.
Note.—3. In the case of plant and machinery newly acquired and held under ‘stock’
in a store pending issue to works, the cost of its maintenance, such as
greasing, oiling, etc., be treated as part of the storage charges.
In the case of other plant and machinery the original book value shall be
depreciated annually by the percentage fixed for ‘depreciation’ in rule 10 of
para 316 of the Kerala Public Works Department Code. In such cases an
estimate for working expenses of plant and machinery in the Stores shall be
sanctioned every year under the sub-head “Stock” and the depreciation charges
56 STORES
referred to in the first sub-paragraph shall be debited thereto by credit to

“Stock”. The handling charges as well all repair and renewal charges which are
not recovered from the party hiring the plant shall also be debited to the
estimate. The handling charges realised from the hirers of plant and machinery
and the portion of the hiring charges (realised under rule 10 of the rules in
paragraph 316 of the Kerala Public Works Department Code) comprising the
percentages for repairs and renewals and depreciation shall be credited to the
estimate and the net figure shall, at the end of the year, be transferred to “50
Public Works—Civil Works—Losses on Stock” or to the receipt head “XXXVII—
Public Works—Miscellaneous.”
7.2.20. The issue rate of an article of stock should be fixed at the
beginning of each year. Normally this rate will remain constant throughout the
year, but as purchases are made or contracts for supply of materials are entered
into variations in cost should be watched and if there is any material variation in
the purchase rates, the issue rate can be revised earlier, if necessary, at the
discretion of the Divisional Officer. It should however, be seen that the issue
rates are kept within the market rates.
Note.—In the case of controlled articles the issue rate should be revised whenever
there is a change in the controlled price.
7.2.21. If the issue rate of an article of stock is appreciably less than the
market rate, the following precautions should be taken in addition to any
restrictions on sales or on issues outside the Division which the Divisional
Officer may prescribe :—
(a) Issues to contractors in pursuance of paragraphs 10.3.4.and 10.3.5. should
be restricted to the bona fide requirements of the works. Excess issue to contractors
and sales should be charged at the market rates.
(b) Issues to other divisions (including other District Stores and the divi-
sions served by them—vide paragraph 7.1.1.) and departments may be made at a rate
higher than the issue rate.
(ii) STORAGE CHARGES
7.2.22. A storage rate is fixed annually for each Division on the basis of
the actual storage charges incurred in the year preceding the year for which the
rate is calculated so that the total estimated annual expenditure may as far as
possible be recovered from the issues likely to be made during the year. Storage
charges calculated at the rate fixed for each year will be added on a percentage
basis so as to form part of the issue rate under paragraph 7.2.19.
STORES 57
(iii) HANDLING CHARGES

7.2.23. A suitable percentage based on carriage and other incidental
charges of the previous year which are incurred simultaneously in connection
with several articles of stock and cannot therefore be allocated to the various
articles should be fixed annually on the principle enunciated in the previous
paragraph and added to the issue rate.
*[The Expenditure on storage charges and handling charges, should be
debited to the sub-head † “carriage and storage” under the suspense head
stock.
As the issue rates for stores fixed are inclusive of carriage and storage
charges and handling charges on percentage basis the amount of recoveries
effected for the year on account of carriage and storage and handling should be
worked out from the total recoveries and credited to the sub head carriage and
storage under the suspense head “Stock”. The profit or loss if any at the end of
the year should be adjusted at the end of the year in accordance with the
provision of para 7.2.34.]
(iv) MODE OF RECOVERY
7.2.24. (a) ** Issue or transfer of Stores to other Stores, Departments,
Local Bodies or Private individuals shall not be permitted except in the
exigencies of public service or other reasons such as disposal of excess stock. In
exceptional cases such issues may be made with the prior sanction of the Chief
Engineer concerned. The Divisional Officer is responsible to see that such cases
the full cost of materials is realised in advance.
Note.—A sale account in K.P.W. Form 18 should be prepared in support of every such
sale.
(b) All adjustments of the value of stock issued except on sale should be
made by the Divisional Officer as in the case of receipts—vide paragraphs7.2.17 and
7.2.18. The Sub-divisional Officer is however, responsible for the clearance, from works
accounts, of all outstandings against contractors on account of the recoverable value
of materials issued to them by charge to works.
(c) The 20 per cent supervision charges should be realised in addition to the
issue rate—vide paragraph 7.2.19. In all cases in which it is recordable under paragraph
306 of the Kerala Public Works Department Code, but the amounts recovered on this
account should not be treated as receipt on account of stock, but as revenue receipts,
or receipts on capital account, as the case may be.
* Substitution G.O. (P) No. 522/80/Fin. dated 22-8-1980.
† Substitution G.O. (P) No. 693/85/Fin. dated 2-11-1985
** Substitution G.O. (P)745/87/Fin. dated 18-9-1987
58 STORES
Note.—In the case of all stores received the actual value should not be levied on stock
materials issued on the works for which centage charges are separately
leviable.
(c) Valuation of quantity accounts
7.2.25. On receipt of the Goods Received Sheets (K.P.W. Form 7A) in the
Division Office, receipts should be valued on the basis of the prices paid or
payable as per bills or other claims. Extra charges, when paid or adjusted, should
be entered in column 11 of the Goods Received Sheets. The Goods Received
Sheets should then be posted in the Priced Stores Ledger.
Note.—In the case of all stores received the actual value which will not be known till
the suppliers’ bill is received and paid, an estimated figure should be adopted
for bringing the liabilities in the stock account under the sub-head “Pur-
chase” vide paragraph 13.2.5. (c) and also for the completion and closing of
the Priced Stores Ledger.
7.2.26. The stock issues should be valued in the Divisional Office at the
issue rate fixed for the purpose—vide paragraphs 7.2.19 to 7.2.21 on the basis of
the third and fourth copies indents received from the Junior Engineer or other
officer concerned—vide paragraph 7.2.11. The third copy of the indent will be
used for posting the Priced Stores Ledger and the Division-wise Register of
transactions adjusted under the head “Cash Settlement Suspense Account” and
the fourth copy sent in due course to the indenting division in support of the
claim for payment.
7.2.27. Carriage and other incidental charges should be debited to stock
only when they are incurred in connection with the general stock requirements.
See also paragraph 10.8.1. These charges should be adjusted against the
particular sub-head under which the item is classified.
7.2.28. To classify and collect, by objects of expenditure the charges
debited to stock from time to time, the same procedure should be observed as is
adopted in respect of expenditure on works, that is, works abstracts and register
of works should be maintained. (See also paragraph 22.4.8)
(d) Monthly summaries of stock receipts and issues

7.2.29. The receipt and issue transactions of the entire Division should be
abstracted in the “Summary of Stock Receipts” (K.P.W Form 8) and the
“Summary of Indents” (K.P.W. Form 9). These forms should be posted daily in
the Divisional Office from the copies of the Goods Received Sheets and the
STORES 59
Indents, the entries being made only in respect of values. The total value of
receipts and issues as brought out in these summaries should be reconciled with
the corresponding monthly totals of the Priced Stores Ledger (K.P.W. Form 11).
7.2.30. When abstracting the transactions recorded in the Goods Received
Sheet and Indents, care should be taken to observe strictly the prescribed
accounts classification—vide Appendix 3. It is not sufficient to enter the name of
the major heads affected, but the minor and detailed heads should also be
stated.
Note.—Although “manufacture” is a sub-head of the stock account, issue stock to
manufacture operations and receipts of out-turn from manufacture should be
accounted for in the same way as issues to or from any other distinct head of
account, and each manufacture operation should be treated as a separate work.
See also paragraph 2.1.1. (56).
V. PRICED STORES LEDGER
7.2.31. An account shall be maintained in theAccounts Branch of the

Divisional Office to record day by day the transactions relating to each item of
stock. This account should be maintained in K.P.W. Form 11, Priced Stores
Ledger which will be duly machine-numbered and will have different sections or
sets of pages for different articles of stock with columns for receipts, issues and
balances for both quantities and values. Separate ledgers will be maintained for
articles falling under each sub-head of stock. Each Ledger should be provided
with an index which should be kept up-to-date.
7.2.32. All items of receipts and issues will be entered in the Ledger from
the copies of the Goods Received Sheet and the Indents which are received
daily from the Junior Engineer or other Officer concerned—vide paragraphs 7.2.6
and 7.2.11. At the end of the day’s postings, the balances under each article
should be worked out in respect of quantities as well as values.
7.2.33. The Ledger should be closed for both quantities and values at the end
of each month. A few pages should be reserved at the end of each Ledger for
abstracting the transactions (value only) pertaining to each article of stock. The
monthly total of receipts, issues and balances should then be worked out for each
sub-head and a consolidated abstract prepared for all the sub-heads which should
agree with the Summary of Stock Receipts and the Summary of
Indents — vide paragraph 7.2.29.
60 STORES
VI. ADJUSTMENT OF PROFIT AND LOSS ON STOCK
7.2.34. At the end of each year, the amount of annual excess or short fall
representing the differences in values due to revision of rates, etc., should be
worked out pro forma and credited to Revenue (or as a receipt on capital
account) or charged off as “Losses on Stock” as the case may be, under the
Major Head under which the stock is held.
Note.—It would not be necessary to allocate the differences over the works; the
profits or losses should be taken in account at the time of fixation of issue
rates for the next year.
VII. STOCK TAKING
7.2.35. The results of all verifications of stock (vide paragraph 303 of the
Kerala Public Works Department Code) should be reported to the Divisional
Officer for orders, but as soon as a discrepancy is noticed, the book balance
must be set right by the verifying officer, treating a surplus as a receipt and a
deficit as an issue, with a suitable remark.
*Note.—(1) In addition to the annual physical and accounts verification mentioned in
para 306 of the Kerala Public Works Department Code, surprise verifica-
tion (without notice) of the stores shall be carried out at least once a year
by the Deputy Chief Engineer (Stores and Purchase). Verification of at
least 25% of the stock of costly items such as cement, steel, bitumen etc.,
shall be conducted during such checks. Irregularities and discrepancies
shall be brought to the notice of the Government through the Chief Engi-
neer (General).
*Note.—(2) The Stores Verification Officer and the Deputy Chief Engineer (Stores and
Purchase) shall, in addition to the detailed stores verification report, sub-
mit a brief summary report direct to the Chief Engineer (General) highlight-
ing cases where serious financial irregularities defalcations, misappro-
priations or other suspicious transactions are detected. The Chief Engi-
neer (General) shall take corrective action in the case of all such reports
immediately on their receipt.
* Insertion G.O.(P)745/87/Fin. dated 18-9-1987.

STORES 61
7.2.36. (a) The value of stores found surplus should be credited at once
as a revenue receipt or a receipt on capital account as the case may be.
(b) The value of a deficit should, however not be charged off finally, but kept
under “Miscellaneous Public Works Advances” pending recovery or adjustment un-
der orders of competent authority. When the loss is declared to be irrecoverable and
its write-off ordered a transfer entry should be prepared clearing the head “Miscella-
neous Public Works Advances” by debit to :—
(i) the works for which the stores were specially collected if the accounts
thereof are still open, or;
(ii) the general head “Losses on Stock” under one or more major heads,
as may be decided by competent authority on a consideration of the
objects for which the store were stocked.
7.2.37. In the cases of special stores depots or Divisions or of
Construction Divisions where there may be large concentration of stores, their
physical verification should be the duty of the executive authorities, and should
be performed by such agency and in such detail as may be decided by the
Government in consultation with the Accountant General.
VIII. RECTIFICATION OF ACCOUNTS
7.2.38. Clerical errors in value accounts of stock should be dealt with

generally under paragraph 6.6.4. Corrections of errors discovered after closing
the accounts of the month should, when permissible, be made (i) by making
entries of values (without quantities) in the Stock Accounts of the current month
when no change is to be made in the head of account affected and (ii) by
preparing transfer entries in other cases.
7.2.39. Other corrections in Stock Accounts may be necessary in the
following cases :—
(i) When quantities are found surplus or short, either as the result of
stock-taking, or otherwise—vide paragraphs 303 and 305 of the Kerala
(ii) When issue rates have to be raised or lowered—vide paragraph 7.2.20.
(iii) When stores of any description become unserviceable (vide paragraph
307 of the Kerala Public Works Department Code) and have, therefore,
to be removed from stock.
62 STORES
7.2.40. These corrections should be effected in the following manner :—

Both in quantity and value accounts, all additions to quantities should be
treated as receipts and reductions therein as issues, a suitable remark being made
in the entries in K.P.W. Form 7 and K.P.W. Form 11—See also paragraphs 7.2.35
and 7.2.36. These entries must be made as soon as differences in quantities
come to notice, but in the case of materials to be declared unserviceable, no
adjustment should be made until receipt of orders of competent authority, which
should be obtained on a Survey Report in K.P.W. Form 17.
7.2.41. No correction will be made in the accounts in respect of stores
declared to be in excess of requirements, vide paragraph 304 of the Kerala
Public Works Department Code. Such stores will continue to be borne on the
stock Account until transferred elsewhere or otherwise disposed of in the ordinary
course.
7.3. TOOLS AND PLANT
I. GENERAL
7.3.1. The tools and plant of a division are of two kinds:—

(a) General or ordinary tools and plant, i.e., those required for the general use
of the division.
(b) Special tools and plant, i.e., those required not for general purposes, but
for a specific work.
The cost of the supply, repairs and carriage of articles of class (a) is
charged to the minor head “Tools and Plant”, whereas similar charges of class
(b) are borne by the work concerned. In both cases, estimates for the purchase
of the tools and plant should be prepared and sanctioned and the expenditure
incurred against sanctioned estimates, in the same way as expenditure on work;
for powers of sanction, See paragraphs 366 III,367 III and 368 III of the Kerala
Note.—See exception under paragraph 7.1.4. and Note 3 below paragraph 7.2.19. with
regard to tools and plant in the P.W. District Stores.
7.3.2. Numerical accounts of articles of both classes should be kept in

accordance with the following rules, a separate set of accounts being maintained
in each sub-division and one in the Divisional Office for tools and plant directly
under the Divisional Officer.
STORES 63
Note—The rules relating to numerical accounts of tools and plant apply also to imper-
ishable articles, e.g., typewriters, furniture of rest-houses, and camp sheds in
charge of the Public Works Department, surgical instruments and hospital
furniture of special P.W.D. dispensaries, whether acquired by charge to heads
of account other than “Tools and Plant”, or received free of cost.
7.3.3. The accounts of tools and plant issued for use by subordinates of
the sub-division, or temporarily lent to contractors, as well as those of articles
lent to local bodies and others under competent authority, should be specially
reviewed periodically, and it should be seen that the articles are returned
without unnecessary delay and in good condition.
Note.—This paragraph also applies to tools and plant sent out for repairs.
II. NUMERICAL ACCOUNTS
(a) RECEIPTS
7.3.4. All articles received should be examined and counted when delivery
is taken. The record of detailed count should be kept in the Tools and Plant
Received Sheet K.P.W. Form 12 which should be prepared in triplicate by carbon
process in indelible ink or copying pencil, one copy being retained by the
Sectional or other Officer concerned and the other two sent to the Sub-
divisional Officer who will retain one copy for posting the Tools and Plant
Ledger (vide paragraph 7.3.7) and pass on the other to the Divisional Officer for
making necessary payments or adjustment of values if required (vide paragraph
7.2.6.). Such acknowledgement as may have to be given to the person from
whom the articles are received can be signed only by the Divisional or Sub-
divisional Officer. An acknowledgement should invariably be given when articles
lent are received back.
In the case of special Tools and Plant K.P.W. Form 12 should be prepared
in quadruplicate for sending one copy to the Accountant General along with the
monthly accounts—vide paragraph 22.4.15.
Note.—1. The entries in K.P.W. Form 12 in respect of the receipt back of articles lent
or sent out (vide paragraph 7.3.3.) should be distinguished from others
by a suitable remark with a reference to the original entries in the Tools
and Plant Indent K.P.W. Form13.
Note.—2. A register showing the receipt, issue and return of the booklets containing
Tools and Plant Received Sheets should be maintained in the Divisional
and the Sub-divisional Offices on the lines prescribed in paragraph 7.2.8.
64 STORES
Note.—3. Two types of booklets will be printed in this case also—vide Note 1 below
paragraph 7.2.6.
(B) ISSUES
7.3.5. The articles of tools and plant should be issued only on receipt of
Tools and Plant Indent in K.P.W. Form 13 signed by the Divisional or Sub-
divisional Officer. Except in the case of cash sales unstamped but dated
acknowledgments must be obtained in support of all issues and in the case of
tools, etc., lent to contractors, such acknowledgements should further set forth
the valuation of the articles lent, as determined by the Sub-divisional Officer.
See also paragraph 7.3.8.
Note.—Entries of articles referred to in paragraph 7.3.6 should be distinguished from
others by a suitable remark in K.P.W. Form 13.
7.3.6. The indent should be prepared in triplicate, two copies being
presented to the Division/Sub-division indented upon and the other retained by
the indenting Division/Sub-division. The supplying Sub-division shall complete
the indent in respect of actual issues and pass on one copy thereof to the
Divisional Office, retaining the other for posting the Tools and Plant Ledger
(K.P.W. Form 14).
In the case of Special Tools and Plant K.P.W. Form 13 should be prepared
in quadruplicate for sending one copy to the Accountant General along with the
monthly accounts—vide paragraph 22.4.15.
(C) TOOLS AND PLANT LEDGER
7.3.7. A consolidated account of the receipts, issues and balances of tools

and plant should be maintained in the Sub-divisional Office in K.P.W. Form 14,
Tools and Plant Ledger. It should be kept in three parts:—
Part I— For articles in hand.
Part II— For articles temporarily lent or sent out— vide paragraph 7.3.3.
Part III—For shortages awaiting adjustment.
In Part I, articles should be grouped under the prescribed sub-heads which
are:—(1) scientific instruments and drawing materials, (2) plant and machinery,
(3) tools and (4) navigation plant. In Part II, the entries should be made in a
STORES 65
separate section for each contractor or other person to whom the articles are
lent or sent out for repairs, etc. Part III is brought into use only if any
shortages come to notice, and the instructions relating to it are given in
paragraph 7.3.19.
7.3.8. Parts I and II of the Ledger should be posted from the office copies
of the Tools and Plant Received Sheets and the Tools and Plant Indents as and
when transactions take place.
Each separate transaction connected with articles lent or sent out (vide
paragraph 7.3.3.)should further be posted in Para II in the section reserved for
the contractor or persons concerned articles lent, etc., being shown under issues
and those received back under receipts.
(D) CHECK IN DIVISIONAL OFFICE
7.3.9. Copies of Tools and Plant Received Sheets (K.P.W. Form 12) and
the Tools and Plant Indents (K.P.W. Form 13) received from the Sub-divisional
Offices should be checked in the Divisional Office so as to see that all tools
and plant purchased or transferred from other divisions or sub-divisions have
been brought on to K.P.W. Form 12 and that all issues of tools and plant are
supported by receipts of the parties concerned and that in the case of transfers,
within the division they have been brought on to the Tools and Plant Received
Sheet in K.P.W. Form 12 of the Sub-divisions concerned and filed together.
The Tools and Plant Ledger of the Sub-Division should also be checked with
the entries in the copies of the Tools and Plant Received Sheets and Indents
retained in the Divisional Office.
III. PAYMENT FOR SUPPLIES
7.3.10. Payment for tools and plant received from suppliers and other
sources should be made generally in the manner prescribed for stock receipts
vide paragraphs 7.2.16. to7.2.18.
IV. RECOVERIES
(A) FOR USE OF TOOLS AND PLANT
7.3.11. The procedure to be observed in charging the cost of tools and

plant in the accounts of a division and, in making adjustments on account of
cost of tools and plant used on works executed on behalf of other divisions,
departments, etc., and on certain works of the division itself, is described in
Appendix 2 to the Kerala Account Code, Volume III.
66 STORES
7.3.12. When tools and plant are lent to local bodies, contractors or others
vide paragraph 7.3.3. the hire and other charges should be recovered regularly in
accordance with the rules in paragraph 316 of the Kerala Public Works
Department Code.
Note:—To avoid disputes about the levy of hire charges on articles of tools and plant
lent to contractors by Government, the contract should invariably specify the
tools and plant to be supplied and the rates at which hire charges have to be
recovered from the contractors.
(B) FOR SALES AND TRANSFERS
7.3.13. The Sub-divisional Officer is responsible that when tools and plant
are disposed of by sale or otherwise with the sanction of competent authority,
the amount recoverable from the parties concerned is realised at the earliest
opportunity. If the amount is not recovered within the month in which the
articles are delivered, it should be charged to “Miscellaneous Public Works
Advances” as a sale transaction, by the issue of a transfer entry.
Note.—A Sale Account in K.P.W. Form 18 should be prepared in support of every
transaction.
7.3.14. When tools and plant are transferred to other divisions or
departments, the Sub-divisional Officer should note in K.P.W. Form 13 in red
ink, just below the entries of quantities, the values thereof if recoverable under
the rules in Chapter 17. The necessary monetary settlement/adjustment will be
effected by the Divisional Office.
7.3.15. The foregoing rules will apply equally to the adjustment or transfer
of the cost of special tools and plant charged to a work or project.
On the completion of a work or project on which special tools and plant
were used or when these tools and plant are no longer required for use thereon,
the Divisional Officers may transfer them, if in efficient condition, to another
work or project in the same division or in any other division where they may be
required for immediate use, after suitable valuation by competent authority,
crediting the value, thus determined, to the work from which they are
transferred by debit to the new work.
A list of such tools and plant whether originally purchased from the
District Stores or from any other source, should, when not required for
immediate use on any other work or project in the same division or any other
division be circulated by the Divisional Officer concerned to all other Divisional
STORES 67
Officers requesting them to report if any of the plans in the list is likely to be
required for any work or project in their divisions in the near future. Such of
the plant as can be used on any works or projects in the near future should be
transferred to the District Stores, with the information regarding the works for
which they have to be reserved and the probable date when they will be required
for the works.
The District Stores should not take into its stock articles of special tools
and plant unless it is known that they are likely to be required for use
anywhere in the near future. Even in the case of ordinary plant offered by any
division to the District Stores, such as pumps, rollers, portable engines and all
other articles that are in common and regular use in the department, the
Divisional Officer shall have the option of taking them over to the stores stock
or not, according to the stock existing at the time of the offer in the stores.
Note.—1. It is not permissible to write-back the cost of special tools and plant in
anticipation of the possibilities of the articles being utilised on another work
or project at the some distant date.
Note.—2. No articles can be removed from the numerical accounts on the plea that the
accounts of the work to which the cost of the articles was charged have been
closed, until they are actually transferred or until, owing to their having
become unserviceable, their write-off has been sanctioned.
7.3.16. Tools and Plant which a District Stores proposes to take over from a
division to the stores stock under paragraph 7.3.15 above shall be valued by him by
taking into consideration the life, the then actual condition of the plan and the then
prevailing market price for a new plant of the kind and the charges (to be estimated)
that may have to be incurred on overhauling and repairs to the plant and credit
given to the extent of the value so arrived at to the work concerned. In this case,
the cost of overhauling and all repairs to the plant and replacements should be
borne by the District Stores but the freight charges to the Division should be borne
by the work from which the plant is transferred.
If any plant although serviceable, is not required for immediate use on any
other work in any Division or is not taken over by the District Store it shall be sold
with the sanction of the competent authority either by public auction at the place at
which it is kept or by calling for sealed tenders or by any other means considered
desirable by the sanctioning authority.
If any plant is considered unserviceable, it shall be condemned and the
sanction of the competent authority obtained on a survey report for its disposal
68 STORES
either by auction as a whole at the place at which it is kept or by breaking it up

for its component materials to be transferred to the stock of the District Stores
as scrap cast-iron or gun-metal, etc., for remelting, credit of the amount of the
sale or the valuation of the scrap as the case may be being afforded to the work
to which the value of the plant stands charged.
V. VERIFICATION
7.3.17. The rule in paragraph 7.2.35 regarding verification of stock, applies

also to verification of tools and plant with the exception that when any articles
are found deficient, the note of the deficiency should be made in red ink in the
Tools and plant Ledger K.P.W Form 14 without making any entries in the
quantity columns, so that the articles may continue to be borne on the accounts
of tools and plant until the loss in adjusted by a recovery or a sanctioned write-
off. See also paragraph 7.3.19.
VI. RECTIFICATION OF ACCOUNTS
7.3.18. Clerical errors in the numerical accounts should be dealt with in the
manner prescribed in paragraph 7.2.35 for stock accounts except that no transfer
entries will be necessary.
7.3.19. Discrepancies in quantities and losses should be dealt with as
under:—
(a) When they are noticed, action should be taken as indicated in paragraph
7.3.17 losses being treated as deficiencies.
(b) When writing up the Tools and Plant Ledger the deficiencies should be
registered in part III and their clearance should be watched. Articles found surplus will
be treated as receipt in part I, and will therefore, require no further action.
(c) If the deficiencies are made good in kind, the receipt should be shown in
the Tools and Plant Received Sheet in K.P.W. Form 12 without making any entry in the
quantity columns, and when posting the transaction in K.P.W. Form 14 the articles
received should not be entered in part I, but taken (with a suitable remark) direct to part
III, in clearance of items outstanding therein.
(d) If the deficiencies are made good by recovery of cost or their write-off is
sanctioned, the articles should be shown, as issued, in the Tools and Plant Indent
STORES 69
K.P.W. Form 13 with a suitable remark, and when this entry is transcribed into the
Ledger K.P.W. Form 14 it should not only be entered in Part I in the ordinary way, but
also entered with a suitable remark in Part III as in case (c) thus clearing the items
outstanding therein.
Note.—1. When Articles temporarily lent or sent out for repairs are lost and the cost
thereof is adjusted by recovery or write-off, the items should be shown as
received back in the appropriate columns of Parts I and II of the Tools
and Plant Ledger and should also be shown as issued permanently in Part
I of the Ledger.
Note.—2. The authority to write of should be obtained on a Survey Report in K.P.W.
Form. 17.
7. 4. ROAD METAL
I. QUANTITY ACCOUNTS
7.4.1. Supplies of road-metal should be measured and paid for in the same
way as supplies of other metals for works—vide Chapter 10. But as metal is
often kept in store at the road-side before being laid down, a quantity account
of it should be maintained in the Sub-divisional Office in K.P.W. Form 15
“Statement of Receipts, Issues and Balances of Road-metal”, copies on loose
sheets being submitted monthly to the Divisional Office within a fortnight of the
submission of the monthly accounts.
Note.—1. This statement should show, kilometer by kilometer, the receipt, disposal
and balance of metal of each kind (Stone, Kunker, etc). The balance of
metal in each kilometer should be shown, whether there are any transac-
tions on it during the month or not.
Note.—2. The statement should show the total metal received and issued on each
kilometer of the road and at the end of the account for any road or section
of a road an abstract would be worked out to show the receipts and issues
according to estimates for the purpose of check with the works accounts.
Reference should also be given in the abstract, to the measurement books
showing the receipt of metal and to paid-vouchers showing the labour
charges for spreading the same. The total balance as per this abstract
should agree with the total balance of the statement.
70 STORES
7.4.2. Unused balances of road-metal should be verified at least once a year

in the manner prescribed in paragraph 303 of the Kerala Public Works Department
Code, and whenever this verification is made a report of verification of the
road-metal should be prepared by the Sub-divisional Officer, showing the
balances as per account in K.P.W. Form 15, the actual verified balances, with
explanations for discrepancies and recommendations as to their adjustments. A
similar verification should be made when the officer responsible for the balance
of road-metal is transferred.
II. RECTIFICATION OF ACCOUNTS
7.4.3. Metal found surplus, as the result of check-measurement (vide

paragraph 284 of the Kerala Public Works Department Code) or otherwise,
should at once be brought on to the quantity accounts. Deficits should,
however, not be removed from the quantity accounts until recovery of their
value or receipt of sanction to write-off; but a red ink remark should be
recorded at once and carried forward, from month to month until the discrepancy
is set right.
Note.—The authority to write-off should be obtained on a Survey Report in K.P.W.
Form 17
III. SCHEDULE OF RATES
7.4.4. A Rate-book or schedule of rates showing the lowest rate at which

metal can be supplied to the road side throughout the division, should be kept
in the divisional office, in K.P.W. Form 16 with such modifications as may be
considered necessary to suit local conditions. The rates should be revised, from
time to time, as old quarries are exhausted or new ones opened, or as other
circumstances affect the rates. See also paragraph 89 of the Kerala Public Works
Department Code.
IV. CHARGES FOR QUARRIES
7.4.5. When land is acquired for extracting road-metal primarily intended

for—
(i) the maintenance of an existing road, or
(ii) the construction of a new road or the raising in class of an existing road;
the following principles of accounting should be followed in adjusting the
charges connected with the land and quarries :—
STORES 71
(a) When the charges do not exceed ` 1, 000 the amount should be debited
direct to “Repairs” or to “Original Works” according as the quarry is intended to serve
the purpose specified in clause (i) or (ii) above.
(b) When the charges exceed ` 1, 000 and the road-metals is required to
maintain an existing road or roads for a series of years, the total initial outlay should
be debited to the sub-head “Land Kilns, etc.” of the Stock Account, and this sub-head
should be gradually relieved, by debit to the collection estimates of each year, in the
manner prescribed in paragraph 12.2.2.for similar charges connected with manufac-
ture operations.
(c) When the charges exceed `.1,000 and the road-metal is required for the
purpose specified in clause (ii) above, the Divisional Officer should charge direct to
the original work concerned such portion of the cost as is proper. The balance, if any,
should be debited to the sub-head “Land Kilns, etc.” of the stock account, and this
Sub-head should eventually be cleared by debit to “Repairs” in the manner prescribed
in paragraph 12.2.2 (b).
7.5. MATERIALS CHARGED TO WORKS
7.5.1. The account procedure relating to materials obtained specially for a

work is described in Chapter 10. Special tools and plant charged to works do
not fall under the category of “materials charged to works”—vide paragraphs
7.3.1. and 7.3.2.
72 TRANSFER ENTRIES
CHAPTER–8
TRANSFER ENTRIES
8.1.1. Transfer entries, that is, entries intended to transfer an item of
receipt or charge from the account of a work in progress or of a regular head of
account to the account of another work or head, are necessary :—
(a) In order to correct an error of classification in the original account;
Note.—Sometimes it is more convenient to classify items pertaining to several heads
(or works) under a single head in the first instance than to classify them under
each from the beginning. For example, when a joint work in which several
parties are interested is undertaken, the individual transactions relating to it
are taken to the account of a single party in the first instance, and before
closing the accounts of a month, the necessary distribution over all the ac-
counts is effected by the transfer entry.
(b) In order to adjust, by debit or credit to the proper head of account (or
work), an item outstanding in a suspense account or under a debit or deposit head;
Note.—The value of materials issued from stock is not adjusted by a transfer entry but
through the stock accounts at the end of the month—vide paragraphs 10.3.7.
and 10.3.12.
(c) In order to bring to account certain classes of transactions which do not

pass through the cash or stock account e.g., :—
(i) For credit to the sub-head “Purchases” on account of materials re-

ceived for works from sources other than stock—vide paragraphs
10.3.7 and 10.3.12.
(ii) For credit to “Public Works Deposits” on account of balances due to
contractors and other Governments on closed accounts—vide para-
graphs 10.5.21 and 10.5.22.
(iii) For credit to revenue heads on account of revenue not recovered in
cash.
(iv) For original debits or credits to remittance heads based on transac-
tions not appearing in cash or stock accounts; e.g., transfer of tools
and plant to another department or Government when the value is
recoverable from them.
TRANSFER ENTRIES 73
(v) For credit to the heads concerned of the several percentages
leviable under the rules e.g., those on account of supervision
(when not recovered in cash), establishment, tools and plant,
etc.—vide paragraph 306 of the Kerala Public Works Department
Code and Appendix 2 to the Kerala Account Code, Volume III
and paragraph 14.2.5. ;
(d) In order to respond to a remittance transaction advised by the Accoun-
tant General or direct by the department concerned, if the corresponding debit or
credit to the Remittance head has not already appeared in the accounts;
(e) In order to relieve the account of a work in progress of :—
(i) Items which have ceased to be chargeable against the estimate for the
work; and
(ii) Suspense charges which can no longer be kept within the accounts of
the work (vide paragraph 10.5.14.). Such transfer entries are neces-
sary either when the accounts of any contractor or of the work itself
are to be closed, or when any recoveries (otherwise than in cash)
have become due e.g., by the transfer of stores to any other work or
account.
8.1.2. For every transfer entry there must either be an authority in K.P.W.
Form 50 Transfer Entry Order or an order recorded on another document (e.g.,
Survey Report, K.P.W. Form 17; the Schedule Docket of Percentage Recoveries,
K.P.W. Form 59; and Final Bill of a contractor’s closed account placed under
Public Works Deposits) which sets forth all the necessary particulars—See also
paragraphs 22.1.2. and 22.4.3.
Note.—1. In case which the Transfer Entry Order is not required to be submitted to
the Accountant General with the monthly account—vide paragraph 22.4.17
the necessary order, if not initiated by a Sub-divisional Officer, may be
signified by the Divisional Officer’s initials against the entry in the Trans-
fer Entry Book ( paragraph 8.1.6.).
Note.—2. There is no objection to a transfer entry covering a number of adjustments
and corrections, provided that all necessary particulars are set forth in
respect of each.
8.1.3. A Transfer Entry Order may be initiated by the Sub-divisional Officer,
and should be so initiated by him in all cases falling within clauses (a), (b), (c)
and (e) of paragraph 8.1.1.which come within his cognizance.
74 TRANSFER ENTRIES
Note.—Transfer entries initiated by the Sub-divisional Officer should be made out in

triplicate, the second and third copies being prepared by carbon process.
The Divisional Office will file one copy in support of an abbreviated entry in
the adjustment register and forward the second copy to the Accountant Gen-
eral in support of the monthly account—vide paragraph 22.4.17.
8.1.4. The Divisional Officer is responsible that no transfer entry is made
in the accounts unless admissible under the rules, that a transfer entry is made
as soon as it becomes necessary, and that Transfer Entry Orders in respect of
transactions falling under clauses (a), (b), (c) and (e) of paragraph 8.1.1.proposed
by Sub-divisional Officers, are countersigned by himself in token of acceptance.
Note.—Transfer entries should receive the special attention of Divisional Officers so
that habitual errors and misclassifications in the accounts of subordinate
officers may not remain unnoticed.
8.1.5. All Transfer Entry Orders should set forth such explanation of the
correction or adjustment proposed to be made as would establish clearly the
correctness and necessity of the entry.
Note.—In case of corrections involving a reduction in the charges against the esti-
mate of a work, it is essential not only that full particulars of the vouchers and
accounts in which the erroneous charges originally appeared are specified,
but also that the circumstances in which the charges were wrongly allocated
under the estimate for the work are clearly set forth. It is not sufficient to state
that the charges were erroneously classified previously.
8.1.6. All transfer entries ordered to be made should be registered in the
Transfer Entry Book, K.P.W. Form 51 maintained in the Divisional Office. Entries
should be grouped separately for each month in the accounts of which they are
to be incorporated. Before the book is closed monthly the Divisional
Accountant should see that no adjustments which are required to be made
under any rule are omitted.
8.1.7. No transfer should be made from one sub-head to another in the
accounts of a work except on the authority of a formal Transfer Entry Order
prepared in accordance with the procedure prescribed in this Chapter and
approved by the Divisional Officer. The order should be filed with the Works
Abstract for the month in which the transfer is effected and it should not be
entered in the Transfer Entry Book.
REVENUE RECEIPTS 75
CHAPTER– 9
REVENUE RECEIPTS
9.1. GENERAL
9.1.1. Public Works revenue is assessed and realised accordance with the
rules prescribed by the Government. The detailed rules relating to the realisation
of revenue from miscellaneous properties and rents of buildings are contained in
paragraphs 319 to 324 of the Kerala Public Works Department Code. The rules
relating to license and other fees from navigation are contained in the Public
Canals and Ferries Acts and the rules issued thereunder. The bulk of the
irrigation revenue for the supply of water for cultivation purposes is collected by
the Land Revenue Department and the Public Works Department has no hand in
its collection or accounts. The general principles for the hiring of tools and plant
including floating plant are contained in paragraph 316 of the Kerala Public
Works Department Code. When revenue is collected it should be correctly
brought to account in accordance with the classification prescribed in Appendix 3.
9.1.2. A register of Miscellaneous properties should be maintained in each
sub-division. In order that no item of revenue may be lost sight of, this register
should be submitted monthly to the Divisional Office and also at the time of the
inspection by the Accountant General.
9.1.3. On the first page of the register there should be clear information
available to show (i) that the register is signed by the Sub-divisional Officer
every month whether there are transactions during the month or not; (ii) When
the register is sent to the Division Office and (iii) When it is received back in
the Sub-divisional Office. When there are no transactions in a month, the
register need not be submitted by the Sub-divisional Officer to the Divisional
Office. The reason for the non submission should be recorded in the register
against the month under the signature of the Sub-divisional Officer and the fact
intimated to the Divisional Office.
9.1.4. As soon as the sales of miscellaneous properties are confirmed and
lease amounts or instalments thereof are collected the Sub-divisional Officer
should see that the particulars pertaining to each item are entered in the register.
He is personally responsible:—
76 REVENUE RECEIPTS
(i) for obtaining the lease agreements wherever necessary within the
prescribed time.
(ii) for collecting the lease amounts or instalments thereof and the
security deposits on the due dates, and
(iii) for seeing to the fulfillment of the other conditions the sale notice
and the agreements. The Sub-divisional officer should also verify regularly every
month the particulars entered the register against the items in which there were
transactions along with the cash book and connected vouchers and documents
and entered in the relevant column in the register, the balance yet realisable in
each case for the year both in figures and in words in his own handwriting with
dated initials. He should also see if the entries verified by him in respect of those
items in the previous months are in any manner tampered with.
9.1.5. When the register is received in the division office for scrutiny the
Divisional Accountant should get the particulars entered against each item
verified under his supervision. He should take to the notice of the Divisional
Officer, in writing, cases where lease agreements are not obtained and lease
amounts and security deposits are not collected within the due dates and see
that they are pursued until the agreements are obtained and the amounts are
collected or until the properties are resold and the amounts recoverable from the
defaulted lessees including losses, if any, are realised.
9.1.6. The Sub-divisional Officer primarily and the Divisional Accountant
secondarily will be held personally responsible for losses, if any, arising from
failure to observe the procedure laid down above.
9.1.7. The licensing and registration of vessels under the Canals and
Ferries Act, the collection and accounting of fees there from and the forms
necessary for the accounting of this revenue are contained in the orders of
Government issued from time to time.
9.1.8. Distinction must be made between receipts which are finally
creditable to Government as revenue of the department and transactions which
represent merely such cash or other value received as has either to be
eventually repaid or to be utilised to meet the cost of some service to be
rendered or already rendered or to be taken in reduction of expenditure
previously incurred. Receipts of the latter class are creditable to the debt,
deposit, remittance or expenditure head concerned and are not subject to the
rules of this chapter. See also Statement E of Appendix 3.
REVENUE RECEIPTS 77
Note.—(1) For appropriation of unclaimed balances lying in the deposit accounts,

See paragraph 15.4.1.
Note.—(2) The sale proceeds of trees felled in the compound of a public office
should be credited to “XXXVII Public Works—Miscellaneous”—if the
felling is done in the course of execution of works by the Public
Works Department. In other cases, the sale proceeds of the usufructs
of trees and trees felled should be credited to the Department to
which the cost of maintenance of the compound is charged.
9.1.9. (a) It is not permissible, to take credit for revenue to the head
concerned until it is realised, but Divisional Officers are responsible that
demands are made as revenue, falls due, that steps are taken with a view to
effect prompt realisation of all revenue, regular or occasional and that proper
records are kept to show in respect of all items of revenue, recurring or non-
recurring , the assessments made, the progress of recovery and the outstanding
debts due to Government.
Note—(1) The object of this rule is that all a classes of revenue whether accru-
ing from property of any kind, from leases of rights and concessions
(e.g., rights for fishing etc., and the use of water power) or from any
other source are properly watched.
Note.—(2) As an exception to the general rule, the following may be credited as
revenue before realisation—
(i) supervision charges on sales of stock on credit,
(ii) sale proceeds of such articles of tools and plant as are creditable
to the minor head “Recoveries of expenditure” by debit to “Mis-
cellaneous P.W. Advances”, vide paragraph 7.3.13.
(b) The recovery of all debts due to Government should receive the
special attention of the Divisional Officer and no debt should be remitted or
written off except under the orders of competent authority.
9.2. IRRIGATION REVENUE COLLELCTED THROUGH THE LAND
REVENUE DEPARTMENT
9.2.1. When revenue from irrigation is realised in the Land Revenue

Department, the procedure described below should be observed:
(a) The collections made in the Land Revenue Department are paid direct
into treasuries. They are brought to account to the credit of the revenue heads
concerned in the Accountant General’s Office without being passed on to the Di-
visional Officer for adjustment.
78 REVENUE RECEIPTS
(b) The Divisional Officer receives from the Collector a monthly state-
ment of the amounts realised to enable him to watch the progress of recoveries
against demands or assessments.
(c) The Divisional Officer should submit to the Accountant General
quarterly statements of demand, collection and balance of irrigation revenue on
the 10th of August, November, February and June of each year showing sepa-
rately for each civil district the monthly realisations as compared with the assess-
ments in respect of each canal or other work.
(d) The Accountant General will maintain a register showing separately
for each civil district the monthly realisation pertaining to the different Divisions.
(e) The Accountant General should bring to the notice of the Board of
Revenue and the Chief Engineer any marked shortcoming of revenue realisations
as compared with the budget estimates.
9.3. RENTS OF BUILDINGS AND LANDS
DEMANDS AND RECOVERIES
(a) From Private Persons

9.3.1. When a public building, land or other property is let to a person
not in the service of Government, the full assessed rent should be recovered in
advance.
Note—Sums received in advance for payment of rents of lands should be cred-
ited to revenue.
(b) From Government Officers and Pensioners
9.3.2. The recovery of rents from Government Officers occupying rentable
building in charge of the department may be made either in cash or by
deduction from their pay bills through the Treasury Officer or other disbursing
officer concerned, in accordance with the rules in articles 15 to 24 of the Kerala
Financial Code.
Note—(1) Amounts due on account of the hire of Government furniture and an
account of the value of articles of furniture and other Government
properties lost or damaged by a Government Officer as well as any other
dues for which a Government Officer may be liable to Government in
respect of the residence allotted to him may also be recovered in cash
or by deduction from pay bills in accordance with the rules in this
paragraph.
REVENUE RECEIPTS 79
Note:—(2) The system of direct recovery in cash from employees of other divi-
sions and departments is ordinarily not suitable when the rent recov-
erable is dependent upon the rate of pay of the occupant.
9.3.3. When rent is recoverable in cash, a bill in a suitable form should be
sent to the tenant on or before the last day of each month. The tenant should
be required to pay in the rent before the expiry of the following month.
9.3.4. When recoveries of rent are to be effected through a Treasury
Officer or other disbursing officer a demand in K.P.W. Form 45, Statement of
rents recoverable in cash or by deduction from pay bills, should be sent, in
# triplicate at least 4 days before the last day of each month, to the officer
concerned who will make the necessary recoveries and return one copy of the
statement duly completed between the 22nd and 25th of the following month
$ to the Executive Engineer/Head of Office.
Note.—(1) Treasury Officer and other disbursing officers are required to recover
the amounts specified by the* Head of Office/Drawing Officer without
prior reference to the tenants and to note, in the statement of rents,
the particulars of emoluments and of changes therein in respect of
Government Officers. Whose rent is limited to a percentage of such
emoluments.
Note.—(2) If the rent recoverable from a Government Officer is limited to a cer-
tain percentage of his emoluments and the emoluments are changed
retrospectively, the rate at which rent is recovered should also be
changed retrospectively.
Note.—(3) If the* Head of Office/Drawing Officer becomes aware that the salary
of a Government Officer has been changed in respect of a period
during which he occupied a Government residence at some other
station or stations, he should see that the intimation of the change of
emoluments is given to the ** Heads of Offices/Drawing Officers of
the stations concerned to enable them to recover the arrears of rent
when necessary.
Note.—(4) ^ Deleted
Note.—(5) In K.P.W. Form 45 will also be included any amounts due on account
of the hire of Government furniture, the value of articles of furniture
and other Government Property lost or damaged by a Government
Officer as well as any other dues for which a Government Officer may
be liable to Government in respect of the residence allotted to him.
#,*,** Substitution. G.O.(P) No.1664/99/Fin Dated 30-07-1999.

$ Addition. G. O. (P) No. 1664/99/Fin Dated 30-07-1999.
^ Deletion. G.O.(P) No.1664/99/Fin Dated 30-07-1999
80 REVENUE RECEIPTS
Note.—(6) A separate K.P.W. Form 45 should be prepared in respect of each ten-

ant who is a gazetted officer who draws his pay direct from the trea-
sury. For non-gazetted officers, there should be a single consolidated
form for each class of establishment whose pay is drawn in a sepa-
rate bill. # Deleted
Note.—(7) @ Deleted
9.3.5 In preparing the statement of demands, the *** Head of Office/
Drawing Officer should rely upon copies of pay slips of gazetted officers
received from the Accountant General and intimation, from heads of offices, of
the changes in the emoluments of non-gazetted officers occupying Government
residences. The completed occupy of K.P.W. Form 45 returned by the Treasury
Officer should also be made use of in preparing the statements of rents for the
next month, and the assessment should be revised whenever any change of
emoluments has been noted by the Treasury Officer. The**** Head of Office/
Drawing Officer should provide also for the recovery of additional rent due
either because the full amount has not been collected in the previous month, or
because the arrears of emoluments have been paid to a Government Officer.
Note.—After necessary action has been taken on the statement of rents in K.P.W.
Form 45 returned by the Treasury Officer, the Divisional Officer will forward
it to the Accountant General.
9.3.6. Amounts recovered by Treasury Officers by deduction from pay
bills cashed at Treasuries subordinate to the same Accountant General will not
be passed on to the Divisional Officer for adjustment as the Accountant General
will credit the revenue head direct in his own books. The Divisional Officer
should, however, credit the accounts of the tenants in the Register of Rents of
Buildings and Lands in K.P.W. Form 46, with the recoveries as certified by the
treasury, disbursing or drawing officer concerned.
9.3.7. (1) The Accountant General will forward to the Division Office the
statement in K.P.W. Form 45 received during a month in his office with the accounts
of treasuries for verification with the set of statements received in the Division Office
direct from the treasury. The Divisional Accountant should see that no statement
pertaining to that treasury has been omitted to be sent by the Accountant General.
He should compare these with the corresponding entries in the Register of Rents Of
Buildings and Lands K.P.W. Form 46 and *intimate the Head of Office/Drawing
Officer to revise the assessment of rents of Government Officers whose rates of
emoluments have been altered by the Accountant General.
*** ,****, Substitution. G.O.(P) No.1664/99/Fin Dated 30-07-1999
#, @ Deletion. G.O.(P) No.1664/99/Fin Dated 30-07-1999
* Substitution. G.O.(P) No.1664/99/Fin Dated 30-07-1999
REVENUE RECEIPTS 81
(2) When a Government Officer is transferred or proceeds on leave or
retries, the **Head of office/Drawing Officer should give the Treasury Officer as
early as possible a notice of the date upto which rent is payable.
9.3.8. All heads of departments and offices should furnish not later than
15th of every month, to the Divisional Officer a statement in suitable form
showing the particulars regarding the names, designation, emoluments, etc., of
the officers occupying quarters provided by Government irrespective of the fact
that rent is payable for them or not and the changes in the occupancy of such
buildings. In the case if vacant buildings head of offices should furnish
information as to what period each building is expected to be vacant and
whether the building will be required during that period by any officer of the
same department. The Divisional Officer should then consider the desirability of
finding tenants for the vacant buildings.
Note.—For the purpose of the above rule it will be sufficient if heads of offices
intimate monthly in the form of additions to and changes in the com-
pleted statement once furnished. When there are no changes, the fact
should be intimated to the Divisional Officer concerned.
9.3.9. The duties of Treasury Officers in the matter of recovery of rents are
laid down below:—
(i) The Treasury Officer will note in column 6 of both copies of state-
ment of rent recording at the bottom of the statement a certificate
that he has done so.
(a) the emoluments actually drawn by the tenant where they dif-
fer from those entered by the ***Head of Office/Drawing Officer in column 3.
(b) any sum drawn by the tenant as arrears of emoluments with
details of the rate at and period for which it has been drawn.
He will also note in column 6 the number of the bill from which deduction
of each item of the rent was made, and if, in any instance, the rent in column 4
has not been recovered in full, a brief explanation of the reasons for non-
recovery.
(ii) He will return one copy #each of the statement thus completed to
the Divisional Officer $ and the Drawing Officer so as to reach
them ^by the 25th of every month.
^, **,* ** Substitution. G.O.(P) No.1664/99/Fin Dated 30-07-1999

#,$ Insertion. G.O.(P) No..1664/99/Fin Dated 30-07-1999
82 REVENUE RECEIPTS
(iii) He will obtain from sub-treasuries details of recoveries of rent

effected there in time for inclusion in this copy of the statement
of rents. Any subsequent recoveries effected by the Treasury
Officer or a Sub-treasury Officer too late for inclusion in the
statement, should be included in the statement of the following
month.
(iv) He will compare and agree the total of the recoveries shown in
the other copy of the statement of rents (which should include
recoveries made too late for inclusion in the first copy) which the
total credits in the treasury account and will submit this copy to
the Accountant General with the treasury account for the month in
which the recoveries were made.
(v) He will continue to recover rent at a rate once intimated by the
@Head of Office/Drawing Officer until advice to the contrary is
received from him, whether the monthly demand statement K.P.W.
Form 45 has been received or not; and when a Government
Officer is transferred, proceeds, on leave , or retires, he will,
unless otherwise instructed by the *Head of Office/Drawing
Officer.
(a) if the Government Officer is paid upto the date if making
over charge, recover from the pay bill the rent due upto that date;
(b) if the Government Officer is not paid upto the date of
making over charge, recover from any pay bill paid, the rent due for the period
covered by the pay bill, and note on the reverse of the last pay certificate the
balance of rent due for recovery on account of the remaining period upto the
date of making over charge.
(vi) He will not conduct any correspondence with tenants on the
subject of their rents but will refer them to the Divisional Officer.
9.3.10. Recoveries made by other disbursing officers should be credited to
the accounts of tenants in the Register of Rents of Buildings and Lands, K.P.W.
Form 46 and adjusted in the divisional accounts by debit to the remittance head
concerned, on the authority of the certified statements received back from them
without waiting for the intimation of the corresponding credit from the
Accountant General.
@, * Substitution. G.O.(P) No..1664/99/Fin Dated 30-07-1999
REVENUE RECEIPTS 83
9.3.11. The amounts representing recoveries of rents relating to another
State Government realised, should be initially accounted for under the minor
head “cash settlement Suspense Account” under section “T. Deposits and
Advances” and should be remitted by the Accountant General to the
Accountant General of the state on whose behalf the rent is recovered by
means of bank drafts obtained by presenting contingent bills debiting the above
head of account. To enable the former to make such payments, the Divisional
Officer should indicate the correct classification including the name of the
Accounts Officer to whom the amounts should be remitted, in the Rent Demand
Statements. The latter Accountant General will encash the draft crediting the final
head of account and intimate the Divisional Officer concerned who should
record the fact of recovery in the register of building.
9.3.12. A tenant who is in receipt of a pension from Government should
be treated as a private individual for the purpose of these rules. But if he desires
to make payment by deductions from his pension, recoveries from him may be
made through the Treasury Officer or other disbursing officer concerned, on the
pensioner’s furnishing the Divisional Officer with a written request authorising
such deduction. This authority should be transmitted to the Treasury or
disbursing officer with the first demand.
9.3.13. In the case of vacation of quarters by a Government Officer before
the last day of a month, owing to his departure on transfer, leave or retirement,
the demand for the rent for the broken period should be made at once so that
the amount due may be recovered before his departure.
9.3.14. Pending orders on a representation against the Divisional Officer’s
*and the Drawing officer’s assessment, the amount assessed should be paid by
tenants on demand. Should the representation prove successful the excess
charged should be adjusted as soon as orders are issued by a deduction in the
assessment of a subsequent month or if this is not practicable or convenient by
an actual repayment.
9.4. REFUNDS AND REMISSIONS
9.4.1. Remissions of irrigation revenue allowed before collection should be

treated as reductions of demands and cash repayments of such revenue after
collection, as “refunds” of revenue. All other refunds of revenue and repayments
of receipts and recoveries on capital account (Appendix 3, Statement E) should
be taken in reduction of the receipts under the heads concerned.
* Insertion. G.O.(P) No..1664/99/Fin Dated 30-07-1999
84 REVENUE RECEIPTS
9.4.2. Before a remission or refund of any kind, otherwise in order, is

allowed, the original demand or realisation, as the case may be, should be traced
and a reference to the remission or payment should be so recorded against the
original entry in the cash book and other accounts as to make the entertainment
of a double or erroneous claim impossible. Any acknowledgement previously
granted should be taken back if possible and destroyed, a note of the repayment
being in any case, recorded on the counterfoil of the receipt.
9.5. ACCOUNTS PROCEDURE
1. REGISTER OF REVENUE
9.5.1. All revenue receipts of the division should be classified and

abstracted in a Register of Revenue K.P.W. Form 44 maintained in the Division
Office. The receipts relating to each project, for which a separate revenue
account is kept, should be registered separately and all the other receipts
pertaining to a major head should be booked collectively. In this register a
column is opened for each minor head of revenue (and detailed heads
subordinate to it) other than ‘Deduct—Refunds’ for which a single deduction is
made from the total revenue of the month, the details of the charges making up
the figure to be deducted being recorded in a separate Register of Refunds of
Revenue which should also be in K.P.W. Form 44.
Note.—For accounts procedure in respect of refunds of rents realised See note 1
to paragraph 9.5.6.
9.5.2. All receipts falling under the minor head “Receipts and Recoveries
on Capital Account”, should also be abstracted in K.P.W. Form 44, a separate
account being kept for each project the expenditure on which is booked
separately.
9.5.3. In respect of rent receipts of the buildings and special services for
which a subsidiary account is kept in K.P.W. Form 46, it is not necessary to
make entries in detail in any of the registers in K.P.W. Form44. The monthly
totals only (excluding the amounts realised by the Treasury Officers) for each
class, of the rents for which separate detailed heads have been opened under
the minor head “rents” should be transferred from K.P.W. Form 46 to K.P.W.
Form 44.
REVENUE RECEIPTS 85
2. REGISTER OF RENTS
9.5.4. A register in K.P.W. Form 46 (Register of Rents of Buildings and

Lands) should be maintained in the Divisional Office to show the monthly
assessments, realisations and balances of rents of all residential buildings,
(including office buildings used as residences) and of such other buildings,
lands, etc., as may be available for being let. No building or site should be
excluded from this register on the plea that it is intended to be occupied rent-free
or is not likely to be rented, but all such buildings may be grouped separately.
Note.—(1) Private buildings which have been hired for use as residences or are
used as such, wholly or in part, should be included in this register.
Note.—(2) Rent-free quarters for menials need not be entered in this register
except when allotted to persons from whom rent is recoverable, nor
need rest houses and other traveller’s bungalows be entered although
rent receipts from them are also treated as rents of buildings which
are required to be booked under the minor head ‘Rents’.
Note.—(3) When new quarters are constructed it should be ensured that they are
included in this register and the standard rent is got approved by
Government to enable the rent being assessed under the rules with
reference to this standard rent.
Note.—(4) When improvements to existing residential buildings or buildings for
which rent is recovered are carried out the standard rent should be
revised and got approved by Government with effect from the date of
completion of the work; any difference between the rent recovered
and the rent due must be assessed and recovered.
Note.—(5) Notes 3 and 4 will apply to the expenditure on provision of special
services in connection with residential buildings such as furniture,
etc., for which rent is charged separately.
Note.—(6) If a building is actually occupied prior to closing the accounts of
expenditure on its construction, acquisition or equipment, rent is
nevertheless chargeable from the date of occupancy and should
therefore be fixed provisionally with the sanction of competent
authority.
86 REVENUE RECEIPTS
9.5.5. The entries relating to the assessment of rent should be made

month by month and for this purpose arrangements should be made to obtain
timely intimation (with full particulars) of all changes of tenancy from the
subordinates in charge of the properties—vide also paragraph 9.3.8.
Note.—If any property is occupied free of rent or if the rate for any month’s
assessment is neither the standard rate nor the ten per cent of occupant’s
salary, a suitable remark (quoting authority) should be made against the
entry relating to it. If a Government Officer is not entitled to but is
actually allowed the benefit of the 10 per cent concession, a reference to
the specific orders of Government allowing it should be recorded in the
remarks column of the register of rent.
9.5.6. The total realisation of each month should be abstracted at the foot
of the register so as to show separately, (i) cash realised in the division, (ii)
recoveries by other disbursing officers adjusted in the Divisional Accounts
(paragraph 9.3.10) and (iii) recoveries at treasuries adjustable in the Accountant
General’s Office (paragraph 9.3.6) for both rents of buildings and rents of lands,
etc. If buildings are provided with special services such as furniture for which
rent is charged separately, the account of rent charged for each building in
respect of these services should be kept separate from that of the rent of the
building itself and in the abstract also the realisations on account of each of
these services should be shown separately.
Note.—(1) Refunds of rents realised should be treated as payments made and
should therefore be shown separately as minus realisation in the
register of rents of buildings and lands and thus distinguished from
gross realisations of rent.
Note.—(2) As soon as the monthly accounts are sent to the Accountant General
the Divisional Officer should prepare the D.C.B. Statement of rent of
buildings and lands in K.P.W. Form 70 and forward to the
Superintending Engineer every month regularly. The Divisional
Accountant will be responsible for the prompt submission of the
D.C.B. Statement to the Superintending Engineer for scrutiny by the
Financial Assistant. It is the duty of the Superintending Engineer,
among other things, to scrutinise the D.C.B. Statement with the
assistance of his Financial Assistant and to enquire into the reason for
delay in recovery of rent.
WORKS ACCOUNTS 87
CHAPTER – 10
WORKS ACCOUNTS
10.1. GENERAL PRINCIPLES
10.1.1. (a) Expenditure on the construction or maintenance of a work may

be broadly divided into two classes, viz., (1) Cash and (2) Stock charges. As
explained in Chapters 6 and 7, these charges are recorded in the Cash and Stock
Accounts, respectively.
(b) In addition to the charges falling under these main classes there are other
transactions affecting the cost of a work. For example, there may be charges incurred
in other Divisions or Departments, materials received from them or services rendered
by them, or there may be cash receipts such as are taken in reduction of expenditure in
accordance with the rules.
(c) All these transactions pass into the general account of the Division in the
manner described in Chapter 22 and are thence incorporated in the general accounts
of the State. As however, the units of classification adopted in the general accounts
in respect of expenditure are certain heads of account and not individual estimates for
works or contract accounts it is necessary to maintain separate accounts in the Sub-
divisional and Divisional Offices for recording (1) the cost of individual works and (2)
the transactions of individual contractors. These are known as ‘Works Accounts’.
10.1.2. Although the primary object of the accounts of work is to exhibit
simply, but accurately, the actual cost of work done, the rules frequently require the
upkeep of separate accounts for the several component parts of a work which are
not required to attain this object. There are two main reasons for this. In the first
place, it is often desirable to have details which will satisfy the need for statistical
information and for analysis of the comparative cost of various classes of work, of
types of buildings, etc. The more important reason, however, is that in the case of
larger works, especially if the period of construction is a prolonged one, it would not
be possible for the Divisional Officer to exercise efficient financial control over the
recorded transactions of the cost of a work if only the total cost were recorded in
the accounts of the work. The Divisional Officer’s personal knowledge of the
executive arrangements for the execution of a work, and of the actual progress of
work, must be supplemented by a comparison, monthly, of the cost as recorded in
the accounts with the value received in the shape of work done. This monthly
comparison is obviously impossible unless the total cost is split up into convenient
parts in such a way that, as far as possible, the cost of each distinct part may be
compared with the work done thereon.
88 WORKS ACCOUNTS
10.1.3. In recording the cost of an individual work in the accounts no attempt

is made to include therein charges on account of general services, like Establishment
and Tools and Plant, the entire cost whereof is accounted in the general accounts
under the prescribed heads of classification. But if any service connected with the
working estimate for a work is rendered by another division or department and the
claim made by it includes an authorised charge on account of such general services,
under paragraphs 5 to 7 of Appendix 2 to the Kerala Account Code, Volume III
(reproduced in Appendix 9 of this Code), such charge may be accepted and
adjusted in the accounts of the work as part of the cost of the work in the same
way as if the service had been rendered by a contractor.
Note.—(1) When the cost of special tools and plant is included in the cost of a work
under paragraph 7.3.1. the rules in Chapter 7 regarding numerical lists or
returns will apply mutatis mutandis and adjustments on account of the
cost of tools and plant transferred to other works, divisions or departments
will be governed by the rules in paragraphs 7.3.13. and 7.3.14.
Note.—(2) The cost of special establishment employed on the acquisition of land
when chargeable to the accounts of the works concerned under paragraph
16.1.3. should be treated as a part of the work’s expenditure.
Note.—(3) Lump sum charges of Establishment and Tools and Plant recoverable
from other Governments and Departments, for works executed for them
as a standing arrangement should not be included in the accounts of the
works, but dealt with under the rules in Appendix 2 to the Kerala Account
Code, Volume III. (reproduced in Appendix 9 of this Code.)
10.1.4. Primarily the Divisional Officer is the responsible disbursing officer
of the Division. The Sub-divisional Officers are, however delegated with powers
to pass bills upto a maximum amount of ` 2,500 in the case of all first and final
bills and ` 10,000 in the case of intermediate bills. A Divisional Officer may, if
necessary, require bills even below the limits laid down under the above rule to
be sent to him for passing.
Note.—(1) The limit of ` 10,000 in respect of intermediate payments refers to the value
of work actually executed or supplies received and is also the maximum
limit upto which payments may be made on any work in a month—vide
paragraph 10.2.30 (a). This limit is not affected by bills paid after pre-audit
in the Division Office.
Note.—(2) Annual scheme maintenance estimates connected with irrigation works
are excluded from the operation of the rule in the above paragraph.
WORKS ACCOUNTSS 89
Note.—(3) Sub-divisional Officers are authorised to refund deposits credited in the Sub-
divisional Cash Book after necessary verification except in cases where the
party fails to produce the original receipt, or the item to be refunded has
already been credited to Government under paragraph 15.4.1. of this Code,
or confiscated under the provisions of an agreement or bond.
10.1.5. Initial accounts and vouchers connected with charges relating to
works must invariably specify (1) the full name of the work as given in the
estimate, (2) the name of the component part (or “sub-head”) of it, if separate
accounts are kept up for the several component parts and (3) the charges (if any)
which are of the nature of recoverable payments and the names of the contractors
or others from whom recoverable.
Note.—In the case of recoverable charges it should be seen particularly that the
contractors or others on whose behalf the charges are incurred do not get the
benefit of any concession to which they would not be entitled if they had
themselves incurred the charges.
10.2. CASH PAYMENTS
I. INTRODUCTORY
10.2.1. Cash charges on works consist of payments (1) to labourers and

members of work-charged establishments, of their wages and (2) to contractors
and others for work done or other services rendered. The cost of materials
procured specially for works is charged to the accounts of works by transfer
credit to the suspense account “purchases”—vide item 2 of para 10.5.14, but
payments to suppliers are governed by the same rules as payments to
contractors for work done.
The general rules relating to cash payments and vouchers in paragraphs
6.4.1. to 6.4.19. apply to all these classes of payments. Only special rules are,
therefore, set forth in this chapter.
10.2.2. The rules in Article 47 (b) of the Kerala Financial Code, Volume I
enjoining that inevitable payments should be liquidated and recorded at the
earliest possible date, should be carefully observed. There should be no delay in
the payment of bills for work done for want of approved agreement, sanction to
revised estimate, or work-slip or similar reasons.
10.2.3. The maximum intervals permissible at the several stages between the
measurement of a work and payment of bill for it are given below:
90 WORKS ACCOUNTS
Preparation of bill in the Section  Within 2 weeks from date of

Office after measurement of work. 
measurement.

Scrutiny of bill in the Sub-division
Office and passing it for payment by
 Within 2 weeks from date of
 receipt of bill in Sub division
Sub-divisional Officer where Sub-
 Office
divisional Officer is competent to

make payment 
Scrutiny of bill in the Division Office
 Within one month from the date
and passing the same for payment in
 of receipt of bill in Division
Division Office  Office
II. PAYMENTS TO LABOURERS.
(a) Departmental labour
10.2.4. With the following exceptions all persons engaged departmentally for
the execution of works are considered as day labourers and their wages should
be drawn on Muster rolls, K.P.W. Form 19 and charged to the estimates of the
works on which they are employed:—
(1) Permanent and temporary employees of the division whose pay is charged
to the head “Establishment”.
(2) Members of the work-charged establishment as defined in paragraph 42
of the Kerala Public Works Department Code.
10.2.5. Discrepancies between labour reports and muster rolls should be
investigated as soon as the latter are received.
10.2.6. Muster rolls should be prepared in K.P.W. Form 19 and dealt with
in accordance with the following rules:—
(a) One or more muster rolls should be kept for each work, but muster rolls
should never be prepared in duplicate . It is permissible however, to keep one muster
roll for labourers employed upon several small works in cases in which no harm can
result if the total unpaid wages are regarded as relating only to the largest work in the
group.
Note.—Entries in muster rolls should be made in indelible ink or copying pencil.
WORKS ACCOUNTS 91
(b) Labourers may be paid more than once a month and the period covered
by each payment may be determined locally; but separate rolls must be prepared for
each period of payment.
Note.—The payments are made monthly.
(c) The daily attendances and absences of labourers and the fines inflicted
on them should be recorded daily in part I of the muster roll in such a way as.—
(i) to facilitate the correct calculation of the net wages of each person for
the period of payment.
(ii) to render it difficult to tamper with or to make unauthorised additions
to or alterations in , entries once made , and
(iii) to facilitate the correct classification of the cost of labour by works
and sub-heads of works where necessary.
Note.— Sub-divisional Officers should as frequently as possible test-check the atten-
dance of labourers, especially in cases where it is anticipated that the aggregate
payment to be made on nominal muster rolls in connection with a work will
exceed ` .200.
(d) After a muster roll has been passed by the Sub-divisional Officer, payment
thereon should be made as expeditiously as possible. Each payment should be made or
witnessed by the official of highest standing available ,who should certify to the pay-
ments individually or by groups, at the same time specifying , both in words and in
figures, at the foot of the muster roll, the total amount paid on each date. If any items
remain unpaid , the details thereof should be recorded in the register of unpaid wages
K.P.W. Form 19 A (which should be maintained in the sub-division) before the memoran-
dum at the foot of the muster roll is completed by the person who made the payment.
(e) Subsequent payments of unpaid wages should be made on Hand Receipt
K.P.W. Form 24; a note of the payment being kept in the register of unpaid wages as
well as the relevant muster roll.
(f) Wages remaining unpaid for three months should be reported to the
Divisional Officer who will decide in each case whether the liability as an amount
available for payment should continue to be borne in the accounts of the work con-
cerned as exhibited in the Sub- divisional record prescribed in clause (d).
Note.—For action to be taken on the completion of the work, See paragraph 10.5.19.
92 WORKS ACCOUNTS
(g) In Part II of the muster roll form should be recorded the progress of work
done by the labour shown thereon in all cases where such work is susceptible of
measurement. If the work is not susceptible of measurement a remark to this effect
should be recorded.
Note.—It is not necessary to reproduce the details of measurements in Part II, nor
need Part II be written up if progress is reported once a month or oftener in
any other suitable form and such separate reports are considered sufficient.
*(h) In exceptional and urgent cases, such as urgent silt clearance of canals,
closing of breaches, etc., where labourers are employed casually for short periods,
payment may be made on a Hand Receipt Form 24 in which the names and full address
of the labourers should be given, but such payments may not be made except by a
Gazetted Officer or an Upper Subordinate. Nor need muster rolls in K.P.W. Form 19 be
used in the case of work done on requisition, K.P.W. Form 26, when the entries of daily
labour are few; in such cases the particulars can be endorsed on the form of requisi-
tion.
10.2.7. The tabular information under part III of the muster roll form is
intended to locate and minimise delays on the part of the various subordinates
who deal with the roll from issue to the final return.
(b) Labour engaged through a contractor
10.2.8. The payment of daily labour through a contractor, instead of by
muster roll in the usual way, is objectionable in principle. In a case of great
emergency it may sometimes be found impossible to employ labour otherwise
than through a contractor. Should it be possible, in such a case, to determine
the quantities of work done after its completion or at intervals during its
progress, it is expedient to pay the contractor, at suitable rates, on the basis of
works, actually executed. But if, as in the case of urgent repair of canal
breaches, this method of payment is not practicable, it is permissible to pay the
contractor on the basis of the number of labourers employed, day by day, his
own profit or commission being either included in the rates allowed, or paid
separately in lump sum or at a percentage rate. When this course is adopted, a
report of the number of labourers of each class employed daily should be made
by the subordinate in charge of the work daily to the Sub-divisional Officer in
the prescribed form to enable the latter to keep a check on the expenditure and
to deal with the contractor’s claim when received. To avoid disputes with the
contractors, they should be encouraged to sign the daily reports in token of
their acceptance as correct.
Note.—The use of the muster roll or the measurement book is not permissible in such
cases.
*Substitution G.O. (P) No. 315/73/Fin. dated 7-9-1973.
WORKS ACCOUNTS 93
III. PAYMENT TO SUPPLIERS AND CONTRACTORS
A. Record of measurement
(I) MEASUREMENT BOOKS
10.2.9. Payments for all work done otherwise than by daily labour and for
all supplies required for specific works, are made on the basis of measurements
recorded in Measurement Books, K.P.W. Form 21, in accordance with the rules in
paragraph 10.2.11. The Measurement Books should therefore be considered as
very important account records. All the books belonging to a division should be
numbered serially and the pages of each book should be machine numbered and
a register of them should be maintained in K.P.W. Form 84, in the Divisional
Office showing the serial number of each book, the names of the sub-divisions
to which issued, the date of issue and the date of its return, so that its eventual
return to the Divisional Office may be watched.
Note.— A similar register should also be maintained in the Sub-divisional Office show-
ing the names of the Sub-divisional Officer and Sectional Officers to whom
Measurement Books are issued. Books no longer in use should be withdrawn
promptly even though not completely written up.
10.2.10. Such of the completed measurement books as contain
measurements of the works executed by contractors, having running accounts
should be sent to the Division Office for final record, after final bills have been
paid to the contractors. Until then such books if not required for reference by
Sub-divisional Officers, or Section Officers, should be sent to the Division Office
for “temporary record” to be taken back when payments have to be made.
But the completed books, which contain wholly measurements of works or
supplies for specific works for which payments are made on hand receipts or
“first and final bills” or measurements of items of works carried out
departmentally, for which payments are made on nominal muster rolls, or both,
should be sent to the Division Office for final record immediately after all bills,
the measurements of which are recorded therein, have been paid.
(II) DETAILED MEASUREMENTS
10.2.11. In recording detailed measurements the following general
instructions should be carefully observed:—
94 WORKS ACCOUNTS
(a) The top most lines under columns 1 to 4 on each page of a

Measurement Book should invariably be filled in the field. None of the lines
should be left blank. Any lines not required should be carefully scored through
in order to prevent additional entries being made later on. Detailed measurements
should be recorded only by Executive or Assistant Engineers or by executive
subordinates in charge of works to whom measurement books have been
supplied for the purpose.
Note.—(1) Measurements made by an executive subordinate in charge of a work
should be checked by the Sub-divisional Officer by actual measurements
by comparison with plans and estimates or by inspection. When measure-
ments are taken by the Sub-divisional Officer himself, they should, as far
as possible, be checked by the Executive Engineer.
Note.—(2) Engineer, and Engineer subordinate student undergoing their practical
course may be allowed to record measurements, provided they are sys-
tematically checked by one of the officers mentioned above.
Note.—(3) In cases where the Junior Engineer or other executive subordinate in
charge of the stores is not on the spot and that the exigencies of service
require it, the Divisional Officer may authorise any other responsible sub-
ordinate to record the measurements of stores received stock in the Goods
Received Sheets.
Note.—(4) The Foreman in the P.W.D. Engineering Workshops is permitted to record
detailed measurements in measurement books.
(b) All measurements should be neatly taken down in a Measurement Book,
K.P.W. Form 21 issued for the purpose, and nowhere else.
(c) Each set of measurements should commence with entries stating:—
(i) In the case of bills for work done.—
(a) full name of work as given in estimate,
(b) situation of work,
(c) name of contractor,
(d) number and date of his agreement,
(e) date of commencement of work,
(f) date of actual completion of work, and
(g) date of measurement.
WORKS ACCOUNTS 95
(ii) In the case of bills for supply of materials required for specific works:—
(a) name of supplier, (b) number and date of his agreement or order, (c)
purpose of supply in one of the following forms applicable to the case:-
(i) “Purchases” for direct issue to (here enter full name of work as given
in estimate) (ii) “Purchases” for (here enter full name of work as given in
estimate)…………………………………………………...…………………..…….for issue
to contractor………………………………on………………………...(d) date of written
order to commence supplies, (e) date of actual completion of supplies and (f) date of
measurement……………………and should end with the dated signature and designa-
tion of the person making the measurements. A suitable abstract should then be
prepared which should collect, in the case of measurements for work done, the total
quantities of each district item of work relating to each sanctioned sub-head.
(d) As all payments for work or supplies required for specific works are
based on the quantities recorded in the measurement book, it is incumbent upon the
person taking the measurements to record the quantities clearly and accurately. He
will also be responsible for the correctness of the entries in the column “Contents or
Area” for the measurements recorded by him. If the measurements are taken in
connection with a running contract account on which work has been previously
measured, he is further responsible (1) that reference to the last set of measurements
is recorded and (2) that if the entire job or contract has been completed, the date of
completion is duly noted in the prescribed place — vide clause (c) above. If the
measurements taken are the first set of measurements on a running account, or the
first set of measurements on a running account, or the first and final measurements,
this fact should be suitably noted against the entries in the measurement book and
in the latter case the actual date of completion noted in the prescribed place. The
signature of the contractor or his agent should be obtained in measurement books
after each set of measurements, with the addition,
“*I…………………………………..Name………………………..hereby unconditionally
accept that the measurements recorded on pages…………. to…….of this book
represent the correct and complete measurements of all the works done under this
contract”. In the case of illiterate men their thumb impression should be obtained
duly attested by an independent witness.
*Substitution:—C.S.No.1/90/G.O. (P) No.651/90/Fin. dated 27-12-90.
96 WORKS ACCOUNTS
(e) The pages of the book should be machine numbered. Entries should be
recorded continuously in the measurements book. No blank pages may be left and no
page torn out. Any pages left blank pages may be left and no page torn out. Any
pages left blank inadvertently must be cancelled by diagonal lines, the cancellation
being attested. See also paragraph 283 of the Kerala Public Works Department Code.
(f) No entry may be erased. If a mistake is made, it should be corrected, by
the responsible officer. When any measurements are cancelled, the cancellation must
be supported by the dated initials of the officer ordering the cancellation or by a
reference to his orders initialled by the officer who made the measurements. In either
case the reason for cancellation should be recorded.
(g) Entries should, if possible, be made in ink; when this is not possible,
pencil entries should not be linked over. Entries in the “contents or area” column
should be made in ink in the first instance.
(h) Each measurement book should be provided with an index which should
be kept up-to-date.
(III) STANDARD MEASUREMENTS
10.2.12. It is usual in the Public Works Department to maintain standard
measurement books of buildings in order to facilitate the preparation of estimates
for periodical repairs. Where such standard books are maintained, it is also
permissible to utilize them for the purpose of preparing contractors’ bills for
such repairs, so that it may not be necessary to take detailed measurements or
each occasion.
10.2.13. The following rules for the efficient maintenance of these standard
measurement books and the preparation of bills based thereon should be
followed:—
(1) The entries of measurements and abstracts thereof should be recorded
legibly in ink and certified by an officer of at least the standing of a Sub-divisional
Officer in his own handwriting to the effect that they are correct for the purpose of
preparing both the periodical repair estimates and the contractors’ bills. Any corrections
necessary should be attested by a Sub-divisional Officer or a Divisional Officer.
WORKS ACCOUNTS 97
(2) All the standard measurement books maintained in a division should be

numbered in an alphabetical series, so as to be readily distinguishable from ordinary
measurement books, and a register of them maintained in the Divisional Office in
K.P.W. Form 84. A similar register should be maintained in each sub-division showing
the books belonging to it, and the registers kept under lock and key in the custody of
the Divisional or the Sub-divisional Officer concerned. The original standard
measurement books should be kept in the personal custody of the Divisional
Accountant in the Division Office.
(3) Certified copies of measurement books relating to works in charge of
Sub-divisional Officers should be sent to them to be kept in their personal custody
and noted on separate pages of the Sub-divisional register of measurement books.
Note.—This need not be done when the Divisional Office and Sub-divisional Office
are at the same station.
(4) For the use of Section Officers, standard measurements of each work
copied in loose sheets and signed by the Divisional Officer should be sent to the Sub-
divisional Officers who will issue them to the Section Officers concerned.
Note.—This need not be done when the Sub-divisional and Section Offices are at the
same station.
(5) When corrections have to be made owing to additions or alternations in
buildings the Sub-divisional Officers concerned should make the corrections in their
copies of the measurement books. At the same time they should be intimated to the
Divisional Officers who will have the books in their office corrected under their initials.
The copies with the Section Officers, in which corrections have to be made, should be
called for by the Sub-divisional Officers, corrected under their initials and returned.
(6) On the 30th April each year, Divisional Officers should send certificates to
their Superintending Engineers that all the standard measurement books in their Divi-
sions have been inspected by them, that the entries therein have not been tampered
with, and that all corrections due to additions or alternations in the buildings have
been made in the books and that the latter are reliable and up-to-date records.
(7) When a payment has to be based on standard measurements the gazet-
ted officer or subordinate preparing the bill for payment should certify in the ordinary
measurement book and in the bill that the whole of the work (or work since previous
running bill, as the case may be) as per standard measurements in a book, the number
of which should be quoted, has been done and that it has not previously been billed
for in any shape.
98 WORKS ACCOUNTS
(8) Separate measurement books should be set apart for noting the details of
such bills so as to facilitate the review of payments based on standard measurements.
(9) All bills so paid should be specially checked in the Divisional Office with
reference to standard measurements on record in that office.
(IV) REVIEW OF MEASUREMENTS
10.2.14. Sub-divisional Officers should be required to submit the

measurement books in use to the Divisional Office from time to time so that at
least once a year the entries recorded in each book may be subjected to a
percentage check by the Divisional Accountant under the supervision of the
Divisional Officer. The following are the detailed rules on this subject.
(a) The review conducted under these rules will be in addition to that con-
ducted by the Divisional Accountants on all final bills on running accounts and first
and final bills which are received in the Divisional Office for pre-audit—See paragraph
10.1.4.
(b) *A register in Kerala Public Works Form No. 95 A or 95 B should be
maintained in Sub-divisional and Divisional Offices for noting the progress of the
receipt, review and return of measurement books. Twenty-five per cent, at least of the
entries in the measurement books should be reviewed each year. The arithmetical
accuracy of the calculations in 50 per cent of the entries selected for review should
also be checked by the Divisional Accountant. He need not, however, personally
check the arithmetical calculations, when bills come up for pre-audit—vide paragraph
22.2.3.
(c) The percentage check referred to above of the entries made in every
measurement book in use in the Division in a month should be made within the suc-
ceeding four months. For this purpose each Section Officer and Sub-divisional Officer
should make a note of the numbers and pages of the measurement books in which
fresh entries are made by them every month and report these particulars direct to the
Divisional Officer within the first week of the succeeding month. From these monthly
reports of Section Officers and Sub-divisional Officers, the books that should be
reviewed should be regularly entered in the register.
(d) There should be an even flow of books sent for review so that the work
may not be rushed in a few months of the year.
(e) The books for monthly review should be received in and returned from
the Divisional Office on dates to be fixed by the Divisional Officer of each division.
* Substitution G.O. (P) 233/73/Fin. dated 12-6-1973.
WORKS ACCOUNTS 99
(f) The review should be conducted generally with reference to the rules in
this section and paragraph 283 of the Kerala Public Works Department Code. It
should also be seen that measurement books do not contain any entries relating to
labour engaged through contractors—vide note to paragraph 10.2.8.
(g) The payments based on the entries reviewed should be traced into the
various accounts and verified. Similarly supplies or issued of materials to works should
be traced into the materials-at-site accounts, etc., and verified.
(h) Every page reviewed should be initialled and dated by the Divisional
Accountant with remark “Reviewed” and a corresponding entry made in the pre-
scribed progress register. The register should also be submitted to the Divisional
Officer monthly and his initials taken.
(V) CHECKMEASUREMENT OF WORKS
10.2.15. (1) (a) Sub-divisional Officers should necessarily checkmeasure
before payment and in proper time in the following cases:—
(i) all final bills on running accounts,
(ii) all first and final bills over `200, and
(iii) works (included in all kinds of bills over `.25), which will not be
susceptible of check measurement after a certain stage, for example,
works in channel, river on tank beds, foundations which will be covered
up, etc.
(b) As regards other bills not pertaining to works of the kinds mentioned in
item (iii) in the above sub-clause, viz., (i) intermediate bills on running accounts and (ii)
first and final bills over ` 25 and not over ` .200, Sub-divisional Officers should check
measure a large proportion of them. If in such case, it is not possible for the Sub-
divisional Officer to check measure before payment owing to pressure of work, etc.,
then the reasons for not having done the checkmeasurement before payment should
be recorded by him in the “remarks” column of the measurement books concerned and
the checkmeasurement should be done by him at the earliest opportunity after payment
has been made.
(c) The following will be exceptions to the above rules:—
(i) In the case of materials obtained from firms or Public Works Workshops
and Stores departmentally for use on works, when the cost of such
materials purchased at a time is ` 200 or less checkmeasurement is
unnecessary.
100 WORKS ACCOUNTS
Note—(1) Measurements of all jungle or prickly-pear or vegetation to be cleared,

whether the jungle is solid on in patches, should be recorded by the
Section Officer in a measurement book before clearance. The Sub-divi-
sional Officer should also checkmeasure the works before clearance ex-
cept in the case of those costing less than ` 50 in out of the way places,
where there are no other works requiring the Sub-divisional Officer’s at-
tention. In such cases the Divisional Officer concerned will decide whether
the work should be checkmeasured or not.
Note—(2) Clearance works which cost more than ` 100 should be inspected by the
Sub-divisional Officer after clearance and before payment.
(ii) In addition to the checkmeasurement by the Sub-divisional Officers,
it is an important duty of Divisional Officers that they should, during
their inspections, frequently checkmeasure work which are in progress
and that they should maintain a register of such check measurements.
The number of such check measurements by Divisional Officers should
by at least 50 in a financial year—vide also paragraph 284 of the
Kerala Public Works Department Code.
(iii) The fact of checkmeasurement by the Sub-divisional Officer or the
Divisional Officers should invariably be noted in the measurement
book at the time of checkmeasurement and the items checkmeasured
should be indicated by the initials of the checking officer, which should
be placed on the left side of the column “particulars” in line with the
item checkmeasured.
(iv) The certificate to the above effect should be recorded in Part II of the
Bill form as follows:—
“Certified that the items of work whose measurements are recorded on
pages……………………….………to………………..............................of
Measurement Book No………were checkmeasured by me on……….. that the
work done is satisfactory and that the bill as claimed above represents a correct
account of the contractor’s claim.”
(v) The object of checkmeasurement is to detect errors in measurement
and to prevent fraudulent entries. Checkmeasurement should therefore
be conducted with discretion and method those items being selected
which appear obviously incorrect or which would be most easily
susceptible of fraud or which would most seriously affect the total
amount of the bill if inaccurate.
WORKS ACCOUNTS 101
(vi) The entry “measured in my presence” by a Sub-divisional Officer
cannot be accepted as checkmeasurement. When measurements are
taken jointly by officers and subordinates, the measurements should
always be recorded and signed by the senior.
(vii) In the case of works such as breach closing executed by the ryots of
a place estimates are usually prepared and sanctioned after taking
measurements of the work done and after verifying the same with the
claims of the ryots for each item of work. There is therefore no
necessity to measure or checkmeasure the work further.
(viii) The Superintending Engineers should make it a special point to see
that these rules are duly observed.
B. Bills and Vouchers

(I) FORMS OF BILLS AND VOUCHERS
10.2.16. The authorised forms of bills and vouchers are the following:—
(a) First and final bill—K.P.W. Form 22.
(b) Running account bill—K.P.W. Form 23.
(c) Running account bill (Secured advance)—K.P.W. Form 23A.
(d) Hand receipt—K.P.W. Form 24.
The use of the forms is explained in the following paragraphs and a few
explanatory foot-notes are printed on the forms.
Note.—Forms of bills for lump sum contracts are given in paragraph 11.5.1.
10.2.17. First and final bill—K.P.W. Form 22:—
This form should be used for making payments both to contractors for work
and suppliers, when a single payment is made for a job or contract, i.e., on its completion.
A single form may be used for making payments to several payees, if they relate to the
same work (or to the same head of account in the case of supplies) and are billed for at
the same time.
10.2.18. Running Account Bill (Secured Advance)—K.P.W. Form 23A:—
This form is intended for contractors for work only. It should be used in all
cases, in which secured advances are to be made or are already outstanding, in respect of
the same work, against the contractor. When this form is used it should also be utilised
for making on account payment, if any, in respect of the work.
102 WORKS ACCOUNTS
10.2.19. Running Account Bill—K.P.W. Form 23:—

This form is used both for contractors for work and for suppliers. It is
intended to be used for contracts for work when only on account payments are
made. It is not to be used if a secured advance is to be made or if such an
advance in respect of the work is outstanding against the contractor.
10.2.20. The form of bill to be used on each occasion should be the one
most suitable for the correct exhibition of the state of the contractor’s running
account both before and after the transaction regardless of the form or forms
which may have been used for any previous payment or advance.
Note.—Final payments must invariably be made in forms printed on yellow
paper which should not be used for intermediate payments.
10.2.21. Hand Receipt—K.P.W. Form 24:—
This is a simple form of voucher intended to be used for all
miscellaneous payments and advances for which none of the special K.P.W.
Forms 22 and 23 are suitable.
(II) PREPARATION, EXAMINATION AND PAYMENT OF BILLS
10.2.22. Before the bill of a contractor is prepared, the entries in the

measurement book relating to the description and quantities of work or supplies
should be scrutinized by the Sub-divisional Officer and the calculations of
“contents or area” should be checked arithmetically under his supervision. He
need not work out personally all “contents or area” but he is responsible for the
correctness of these entries. The rates allowed should be entered by the Sub-
divisional Officer in the abstract of measurements—vide paragraph 10.2.11. (c).
The bill should then be prepared, from the measurement entries, in one of the
forms prescribed in paragraphs 10.2.16 to 10.2.21 applicable to the case. Full
rates as per agreement, catalogue, indent or other order should be allowed only
if the quality of work done or supplies made is up to the stipulated specification.
When the work or supplies fall short of that standard, and under the agreement,
it is permissible to make a final payment if the contract is determined, or an on
account payment if the contract is to run on, only such fraction of the full rate
should be allowed as is considered reasonable with due regard to the work
remaining to be done and the general terms of the agreement.
Note.—(1) The contract agreement or written order in the case of petty works should
always specify the rates to be paid for the several classes of work or
supply and should not refer to the estimated rates. The fact that a revised
estimate has been sanctioned is no authority whatever for the payment of
rates other than those provided in approved agreements.
WORKS ACCOUNTS 103
Note—(2) Unforeseen items of work provided for by a lump sum provision in an
estimate, should be paid for only after actual measurement. The agreement
should have a clause to this effect.
Note—(3) The revision of rates after work is carried out is entirely inadmissible.
Note—(4) As a general rule, payment for supplies is not permissible until stores have
been received and surveyed and provision for the observance of this rule
should be made in all contracts for the supply of goods. In cases in which
the operation of this rule might result in hardship, as for example, when
costly stores are ordered from a distant firm and delay in payment is
anticipated, an advance not exceeding 90 per cent of the value of the
consignment despatched may be paid to the firm on receipt of the railway
receipt of despatch, provided that the firm is one approved by the
Government and it is distinctly made clear in the agreement or otherwise
that the payment is only of the nature of an advance. The amount should
be debited to the suspense account “contractors” other transactions/
Advance payments” in the works abstract of stock/work concerned—
vide Note 2 below paragraph 13.3.1.
Note—(5) In special cases, however where the Divisional Officers consider that the
exigencies of service require it, Officers authorised under Note 3 under
paragraph 10.2.11 to record measurements may be required to prepare
petty bills connected with stores, such as bills for bandy hire, bills for
coolies for handlings stores, stock, etc., bills for repairs to tents, office
furniture and the like and in these cases the bills or the nominal muster
rolls should invariably be checked by either the Sub-divisional Officer or
the Divisional Officer before payment is made on them. In no case should
disbursements of public money be entrusted to Officers other than
executive subordinates except with the special sanction of Government.
10.2.23. Before signing the bill, the sub-divisional Officer should compare
the quantities in the bill with those recorded in the measurement book and see
that all the rates are correctly entered and that all calculations have been
checked arithmetically. When the bill is on a running account, it should be
compared with the previous bill. The memorandum of payments should then be
made up, any recoveries which should be made on account of the work or
supply or on other accounts, being shown therein. If the Sub-divisional Officer
is empowered to pay the bill, he should then record a formal pay order
specifying, both in words and figures, only the net amount payable, though the
payee should be required to acknowledge in his acquittance the gross amount
payable inclusive of the recoveries made from the bill.
104 WORKS ACCOUNTS
Note.—(1) The amounts withheld from bills towards security deposits should be
rounded to the next higher rupee.
Note.—(2) Fractions of a rupee in the totals of bills amounting to ` .25 or more should
be rounded to the nearest rupee, i.e., fractions of less than half a rupee
should be disregarded and half a rupee and over taken as a rupee. In all
agreements with contractors a specific condition as to rounding of pay-
ments as above should be inserted.
Note.—(3) When the amounts chargeable to each estimate in the case of works or
supplies to be charged to more than one estimate, are not less than
` .25,fractions less than half a rupee should be disregarded and fraction
of half a rupee and over taken as one rupee.
Note.—(4) If the contract is for completed items of work and, under the provisions of
paragraph 10.3.3.the contractor is required to obtain materials of any de-
scription from Government, it should be seen that this condition is being
complied with and that necessary recoveries of the cost of the materials
supplied to him, are being made in accordance with paragraph10.3.7. In
such a case it is not permissible for the contractor to obtain the materials
otherwise, unless in a case of emergency, the supply has been entrusted
by the Divisional Officer, for recorded reasons, to the contractor himself,
at suitable rates.
Note.—(5) Before signing a first and final bill, or the first bill on a running account, the
Sub-divisional Officer should see that the relevant measurement entries
were marked as pertaining to such bills, by the person taking the measure-
ments—vide paragraph 10.2.11. (d).
Note.—(6) Sub divisional Officer should observe carefully the rules in paragraph
10.2.15. Regarding the check measurement of works in the case of first
and final bills and running account bills in excess of ` 200.
Note.—(7) Work done in March shall be measured and paid for in the same way as
work done in any other month, e.g., it should be ordinarily not paid for till
April. Works completed in the early part of March may, however, be mea-
sured and paid for before the end of the month, if that would be the normal
course in other months.
Note.—(8) Bills which include charges on account of purchase of goods on which
Sales tax has also been charged should be supported by the following
certificate signed by the Divisional Officer:—
WORKS ACCOUNTS 105
“Certified that the goods on which Sales Tax has been charged have not
been exempted under the Central/State Sales tax Act or the Rules made
thereunder and that the charges on account of Sales tax on these goods are
correct under the provisions of that Act or the Rules made thereunder and that in
the case of supplies against regular contracts, the relevant contract includes a
specific provision that Sales tax is payable by Government”.
10.2.24. If the Sub-divisional Officer is not empowered to make the
payment, the bill should be submitted with the measurement book to the
Divisional Office when the payment will be authorised by the Divisional Officer
after the necessary scrutiny. See also paragraph 10.1.4.
10.2.25. In the case of materials received from firms in India by a
Division/District store/Sub-division on orders placed by the Chief Engineer/
District Stores Officer/Divisional Officer the following procedure should be
observed:—
(a) A register in K.P.W. Form 94 should be maintained in the indenting/paying
office to watch the disposal, from start to finish, of all orders for stores placed on firms
in India. A sufficient number of pages of this register should be allotted for the orders
placed on account of each Divisional/District Store/Sub-division all such orders be-
ing noted as they are issued in the register.
(b) The firms should be required to send in their bills along with the consign-
ments direct to the officer supplied.
The latter should make the necessary entries in a measurement book as
soon as the stores are received and should then pass on the measurement
book and the bill to the Officer authorised to make payment for passing giving
a reference to the measurement book in the bill and vice versa. The Officer
should check the bill against the original order and the agreed quotations, if
any, and also with the entries in the measurement book, have the necessary
entries made in the register prescribed for the purpose, pass the bill scoring out
the entries in the measurement book, and return, the bill with the measurement
book to the Divisional Officer/District Stores Officer/Sub-divisional Officer who
should then pay the bill and note the fact in the measurement book.
10.2.26. From the measurement books, all quantities should be clearly
traceable into the documents on which payments are made. When a bill is
prepared for work or supplies measured a remark to the effect “bill submitted to
the Sub-divisional Officer/Divisional Officer on” should be endorsed on the
abstract of measurements. The Officer who signs the pay order should
106 WORKS ACCOUNTS
immediately on signing it, cross out every page containing the detailed
measurements of the work or supplies paid for by a diagonal red ink line. The
Officer who actually disburses the amount should enter the number and date of
the voucher of payment with the remark “Paid on……………………………vide
voucher No……………………” on the abstract of measurements.
Note.—The document on which payment is made should invariably show in the space
provided for the purpose, the number and page of the measurement book in
which the detailed measurements are recorded, and the date on which the
measurement was made.
10.2.27. Payments should not be made for bricks at a supplier’s private
kiln until they are handed over to the charge of the Public Works Departmental
Officers.
10.2.28. To ensure the proper performance of the duties imposed on the
Divisional Accountant under paragraph 22.2.1. etc. seq., he should have no hand
either in preparing the bills of contractors or suppliers or in making cash
payments to the latter, as such duties will impair his usefulness as examiner of
claims and payments.
10.2.29. Contractors who are able to prepare their own bills should be
supplied with K.P.W. Forms 22 and 23, measurement sheet for recording
measurements, for their information, in support of the quantities entered in the
bills.
The Public Works Departmental Officers and subordinates should however,
record measurements independently wherever necessary in their measurement
books—vide. paragraph 10.2.11. The contractor’s bills, when presented, should be
checked by the subordinate in charge of the work with the measurements
recorded by him in his measurement books and check measured by the Sub-
divisional Officer before payments are made. See paragraph 285 of the Kerala
10.2.30. (a) Payments for work done or supplies made on a running
account bill K.P.W. Form 23 should ordinarily be made monthly. Both the
“quantities” and “amount” of each district item of work or supply should be
shown separately in the bill except—(i) in the case of completed items of sub-
works, the full details of which were included in previous bills, and (ii) in the
case of such of the incomplete items or sub-works as remain unaffected since
previous bill.
WORKS ACCOUNTS 107
In respect of items (i) and (ii) above, it is sufficient if the amounts paid on
earlier bills are shown in the subsequent bills, reference being given therein to the item
numbers of the previous intermediate bills and the pages of the measurement book, in
which full details were recorded. Full details (names, quantities, rates and amounts)
should, however, be shown in the final bill for all sub-works and items.
(b) Such payments should be treated as payments on account subject to
adjustment in the final bill which should be drawn, in the appropriate form but printed
on yellow paper, when the work or supply is completed or the running account is to be
closed for other reasons. When a final payment is made on a running account, the
payee, if he is able to write, should add in his own handwriting that the payment is “in
full settlement of all demands—”. If the payee is illiterate, or is unable to write beyond
signing his name, these words should be filled in by the officer making the payment.
Note—(1) If the contractor refuses to give an acknowledgement to the effect that the
payment made to him was in full settlement of all demands, it is not
necessary to insist on obtaining a qualified acknowledgement (vide section
38 of the Indian Contract Act, 1872).
Note—(2) A form printed on yellow paper is never to be used except for final payments.
Note—(3) Payment of any amount after the contractor has accepted final payment in
settlement of all demands requires the special sanction of Government
with the exception the disbursing officers are not precluded from enter-
taining a bona fide claim, which was omitted from the bill by mistake or
through inadvertence and paying without the sanction of Government.
(c) A separate running account is maintained in respect of each contract.
Transactions relating to two or more separate working estimates should not be brought
on to the same running account; they should therefore, not be covered by a single
contract. Transactions relating to two or more separate parts of the same working
estimate, for which separate works abstracts are prepared under paragraph 10.5.6.,
should also appear is separate running accounts.
Note.—In exceptional cases where more than one working estimate is covered by a
single contract, the contract agreement should not be split up but the estimates
should be consolidated to facilitate the maintenance of proper accounts in
respect of that contract. If this procedure cannot be observed, some special
accounts procedure should be devised on the merits of each case by the
Accountant General. No consolidation of estimates or special accounts
procedure is necessary where separate estimates covered by the single contract
relate to different account heads or where separate estimates whether relating
108 WORKS ACCOUNTS
to different account heads or not, are covered by a single running rate contract
as in the case of the painting of roads, etc., and where separate agreements
are drawn up on the basis of such rate contracts with other details varied to
suit the requirements of each job.
10.2.31. When secured advances are allowed by the Divisional Officer under
paragraph 10.2.33. (b), to a contractor whose contract is for finished work, it
should be seen that an indenture in K.P.W. Form 23 (c) has been signed by the
contractor, and a detailed account of the advances must be kept in Part II of
Running Account Bill (Secured Advance). There should be separate entries, in
respect of each class of materials, of the quantities brought to site by the
contractor and the amounts advanced under the orders of the Divisional Officer.
These advances must be recovered by deduction from the contractors’ bills for
work done as the materials are used in construction and the items of work in
which they are used are billed for on the basis of actual measurements. Part I
and II of the bill should be compared to see that this order is being complied
with. As recoveries are made the outstanding amounts of the items concerned
in Part II should be reduced by making deduction entries in the column,
“Deduct-quantity utilized in work measured since previous bill”, equivalent to
the quantities of the materials used by the contractor on items of work shown
as executed in Part I of the bill.
Note.—No record should be kept in measurement books of the quantities of the
materials, but certificate 3 printed on the bill should be signed by the Sub-
divisional or Divisional Officer in terms of paragraph 10.2.33.(b).
C. Aid to contractors
10.2.32. It is necessary sometimes, in the interest of work, to engage

labourers or contractors or to incur other liabilities on behalf of the contractor
concerned, with a view to complete work which he has neglected or failed to
complete. In such a case, it is permissible to spend Government funds on behalf
of the contractor in accordance with the terms of his agreement. Otherwise no
advance or recoverable payment should be made to or on behalf of a contractor,
nor should financial aid be given to him in any form, except in accordance with
paragraphs 10.3.4. and 10.3.5. regarding the issue of materials and the paragraphs
below:—
Note.— With a view to avoid subsequent disputes with the contractor, suitable inti-
mation should be sent to him (1) as soon as action is taken under this para-
graph, and (2) subsequently, as charges are incurred on his account.
WORKS ACCOUNTS 109
D. Advances to contractors
10.2.33. Advances to contractors are, as a rule, prohibited and every

endeavor should be made to maintain a system under which no payments are
made except for work actually done. Exceptions are however, permitted in the
following cases:—
(a) Advance payments for suppliers are governed by the provision in Note
4 below paragraph 10.2.22.
(b) Cases in which a contractor, whose contract is for finished work, re-
quires an advance on the security of materials brought to site, Divisional Officers may
sanction advances upto an amount not exceeding 75 per cent of the value (as as-
sessed by themselves) of such materials, provided that they are of an imperishable
nature and that a formal agreement is drawn up with the contractor under which
Government secures alien on the materials and is safeguarded against losses due to
the shortage of misuse of the materials, and against the expense on tailed for their
proper watch and safe custody. Payment of such advances should be made only on
the certificate of an officer, not below the rank of Sub-divisional Officer, that the
quantities of materials upon which the advances are made have actually been brought
to site, that the contractor has not previously received any advance on that security
and that the materials are all required by the contractor for use on items of work for
which rates for finished work have been agreed upon. The officer granting such a
certificate will be held personally responsible for any overpayment which may occur
in consequence. Recoveries of advances so made should not be postponed until the
whole of the work entrusted to the contractor is completed. They should be made
from his bills for work done as the materials are used, the necessary deductions being
made whenever the items of work in which they are used are billed for. The Divisional
Officers are responsible that:—
(i) When secured advances have been made for materials recoveries are
made regularly from the very first payment made for those items of
actual work in which such materials have been used.
(ii) No secured advances are made for any materials unless they are to be
used within three months at the most.
(iii) Materials are actually measured in detail (but not entered in measurement
book) before making secured advances on them.
Note.—Imperishable materials include bricks, rolled steel joists etc., while article such
as lime, sand, kankar, etc., are perishable.
110 WORKS ACCOUNTS
IV. *PAYMENTS TO WORK-CHARGED ESTABLISHMENTS
(a) Conditions of employment

10.2.34. Rules for the entertainment of work-charged establishment are laid
down in paragraph 42 and 43 of the Kerala Public Works Department Code.
Subject to such general or special orders as may be issued by Government
previous sanction of the Divisional Officer or the Superintending Engineer, as the
case may be, is necessary which should specify in respect of each appointment
(i) the rates of pay and allowances, (ii) period of sanction and (iii) the full name
(as given in the estimate) of the work and the nature of the duties on which
the men engaged would be employed.
(b) Pay bills
10.2.35. Wages of members of the work-charged establishment should be

drawn and paid on K.P.W. Form 25 “Pay Bill of Work-charged Establishment”,
which is a combined pay bill and acquittance roll form. A consolidated bill in this
form should be prepared monthly either for the whole sub-division or for one or
more sections of it, as may be convenient; but the names and claims of the
entire establishment concerned, including absentees, should be shown in each
bill. Names should be grouped in the bill by works on which the men are
employed, sanction to the entertainment of the establishment should be quoted
in each case, and the Sub-divisional Officer should certify, in the space provided
for the purpose, that the men were on duty during the periods shown against
their names, each man being employed on the work and on the duties for which
his appointment was sanctioned.
Note.—Deductions on account of fines, income-tax, etc., should be shown by special
entries against the names concerned.
10.2.36. If the acknowledgement of an individual cannot conveniently be
obtained on the bill itself, it may be obtained separately on a Hand Receipt,
K.P.W. Form 24 which should then be attached to the bill as a sub-voucher.
10.2.37. Pay bills may be signed at any time on the last working day of
the calendar month in which the wages are earned, though they are not due for
payment before the first working day of the following month. When, however,
the services of an individual are dispensed with, it is permissible and advisable
to settle up his account at once.
*Applicable to part-time/seasonal work-charged establishment.
WORKS ACCOUNTS 111
(c) Unpaid wage
10.2.38. Wages remaining unpaid on a passed bill, on the date fixed for
the closing of the accounts of the month, may be paid subsequently when
claimed, the procedure described below being observed:—
(a) Items remaining unpaid on the monthly bill should be entered in a simple
register, full particulars of the charge including reference to the bill, being noted in the
register. K.P.W. Form 19 (A) suitable modified, if necessary, may be used for this
purpose.
(b) Subsequent payments should be made on Hand Receipts, K.P.W. Form
24 reference to the bill in which the charge was originally included, and to the particu-
lar item thereof, being quoted in each case.
(c) When making payments of arrears suitable notes of payment should be
so recorded against the original entries in the register as to guard against a second
payment.
(d) Travelling expenses
10.2.39. No bills need be prepared in support of claims for travelling

expenses. Payments should be made on Hand Receipts; K.P.W. Form 24 which
should set forth all the necessary particulars of the journey performed and of
the expenses claimed and should be countersigned by the Divisional Officer
prior to payment.
(e) Classification of charge
10.2.40. Every payment made to a member of the work-charges

establishment, whether on account of his wages or in recoupment of actual
travelling expenses, should be charged to the work on which he is employed.
Note.—Leave salary advances and other personal advances made to members of the
work-charged establishment should be initially debited to “M.P.W.
Advances—other Items” and their clearance made at the time of final payment
of leave salary, etc.
10.2.41. The cost of work-charged establishment must be shown as a
separate sub-head of the estimate.
112 WORKS ACCOUNTS
10.3. ISSUE OF MATERIALS
I. GENERAL
10.3.1. Issues of materials to works whether from stock or by purchase,

transfer of manufacture, are divided into two classes:—
(1) Issues to contractors.—Issues of materials to contractors with whom
agreements in respect of completed items of works, i.e., for both labour and materials
have been entered into.
(2) Issues direct to works.—Issues of materials when work is done depart-
mentally or by contractors whose agreements are for labour only.
10.3.2. In order to control the issue of materials to individual works with
reference to the estimated requirements a numerical account of all departmental
materials brought on to the site of a work for use on that work should be kept. This
account is commonly known as materials-at-site (M.A.S.) account and shows the
receipts, issues and balances as the transactions occur. A brief reference to the
Goods Received Sheet if the case of receipts from stock and to the Store Indent in
K.P.W. Form 9 in respect of issues should be given in the account.
The accounts of materials issued direct to works and to contractors should
be maintained in K.P.W. Form 31 and 31A respectively.
Note.—(1) Materials already brought on to the site of work and accounted for as
receipts in the site accounts, should be shown as minus receipts in the
same when they are transferred to stock or to another work, etc.
Note.—(2) It is important as far as possible that materials should be obtained only
when actually required and to the extent of actual requirements.
Note.—(3) Petty items, the aggregate value of which comes under ` 1,000 need not be
entered in the material-at-site accounts.
Note.—(4) Whenever a change in the estimated requirements arise due to the revi-
sion of the original estimate the correction should be effected in the mate-
rials-at-site accounts showing the reasons for the change.
Note.—(5) A monthly return in K.P.W. Form 31 or 31A as the case may be, should
invariably accompany the Works Abstract.
10.3.3. When materials are obtained by purchase it is important that the full
details of the articles should at once be entered in a Measurement Book, K.P.W.
Form 21 in the manner prescribed in paragraph 10.2.11 (c). See also paragraphs 7.2.4
and 7.2.5.
WORKS ACCOUNTS 113
II. ISSUE TO CONTRACTORS
(a) General conditions
10.3.4. (a) The issue of materials to contractors executing works is

generally permissible only in the following circumstances:—
(i) When it is decided to retain in the hands of Government the supply to
the contractor of imported materials;
(ii) When, in the interest of work, or with the object of utilizing existing
stocks of materials, it is desirable to retain in the hands of Government the supply of
certain other materials as well, and a condition to this effect has been inserted in the
contract.
(b) In both cases the contract should specify (1) the materials to be supplied
by Government for use on the work, (2) the place or places of delivery and (3) the rates
to be charged to the contractor for each description of materials and the contractor
should be held responsible for obtaining from Government all such materials required
for the work and for making payment therefore, by deduction from his bills, at the rates
specified, regardless of fluctuations in the market rates or in the stock rates of the
Division. In cases where the value of materials (purchased by Government or drawn
from Government stock) issued to a contractor or piece-worker is not covered by the
work done by him or by payment in cash it is important that Government should be
secured from any possible loss resulting from any failure on the part of the contractor
or piece-worker. In such cases sufficient security should be obtained from him before
the materials are issued.
Note.—(1) The rates to be charged to the contractor for materials to be supplied
should be definitely specified, vague quotations, e.g., “at stock rates,”
being avoided; and if intending contractors had been told that the mate-
rials would be supplied at a certain rate and asked to tender on that
assumption then that rate should be adhered to in the contract.
Note.—(2) Similarly the rates to be allowed to the contractor for items of work should
be definitely stated.
(c) No carriage or incidental charges are borne by Government for moving
the materials beyond the place where the contractor has agreed to take delivery thereof.
10.3.5. (a) As a general rule no other materials should be supplied to such
contractors for use on works, but this restriction may be waived by the Sub-
divisional Officer in respect of petty issues (at full issue rates) of materials from
existing stocks, not exceeding `.50 in any month for any one contract.
114 WORKS ACCOUNTS
(b) If any time subsequent to the execution of a contract on a thorough rate

basis, the contractor desires the issue to him, for use on a work, of materials which
exist in Government stocks but the supply whereof by Government was not provided
for in the contract, the materials should not be issued except with the express author-
ity of the Divisional Officer who should specify in each case the rate to be charged for
the materials inclusive of delivery at the place where they are stored. *“The rate
charged should be the market rate prevailing at the time of the supply or the issue rate
plus 20% supervision charges whichever is higher”.
Note.—The intention of this rule is to prohibit the supply of materials to contractors
with the object of giving them financial aid, the grant of which is governed by
the rules in paragraph 10.2.32.
†(c) If at any time subsequent to the execution of a contract, departmental
materials are issued for carrying out extra items of work when the issue of such depart-
mental materials is not contemplated in the Agreements, recovery will be made at the
rate at which the cost of materials is included in the data for working out the rate for
such extra items. The recovery rate will be included in the supplemental schedule to
the Agreement.
(d) Issues of stock materials to contractors for bone fide use on works are
exempt from the usual charge of 20 per cent on account of supervision, which is made
when stock materials are sold to the public. (paragraph 306 of the Kerala Public Works
Department Code)
(b) Accounts procedure
10.3.6. All materials required for issue to a contractor under any of the
provisions of paragraphs 10.3.4. and 10.3.5. should be made over to him, as soon
after their receipt as possible and an unstamped but dated acknowledgement
detailing full particulars of the materials, the rates and values chargeable to him
should at once be taken from the contractor. The issue of materials should
simultaneously be entered in the account of materials issued to contractors,
K.P.W. Form 31A.
10.3.7. On the authority of the contractor’s acknowledgement the cost
chargeable to him under paragraph 10.3.4. or 10.3.5. as the case may be, should
be debited at once to his personal account by charge to the Suspense Head
“Contractors—Other transactions advance payments” in the work accounts.
The adjustment should be effected by affording credit to the heads
concerned as indicated below:—
*Substitution:—G. O. (P) 801/81/Fin. dated 25-11-1981.
†Insertion:—G.O. (P) No.56/73/F in. dated 21-2-1973.
WORKS ACCOUNTS 115
Source of receipt of Head of Account to Value to be

materials be credited credited
1. Stock (including Stock At issue rates

manufacture)
2. Transfer from Work concerned At a valuation made under

another work paragraph 10.3.14(d).
3. Transfer from Suspense account At rates charged by the

another division, “Purchase” of the division, depart-ment or
department or work Government concerned.
Government
4. Suppliers do. At rates payable to the
suppliers under their
contracts.
If the amount thus credited differs from the charge made to the contractor’s
account the difference should be treated as additional final outlay, under a
separate sub head “Additional charges for materials issued to contractors/Direct
to works” plus or minus according as the amount charged to the contractor is
less or more than the amount credited as above.
Note.—The object of this rule is to ensure that the full amount chargeable to the
contractors is debited to his account as soon as the materials are delivered, so
that(1) he may not receive payment, at full rates, for the completed items of
work prior to the value of Government materials used by him therein, being
charged to his account or (2) his final bill for work done may not be settled
before the full value of materials recoverable from him has been debited to his
account.
10.3.8. The recovery from a contractor on account of the cost of
materials issued to him for use on a work should ordinarily be made by
deduction from the first bill authorising an on account payment to him for the
work. Should however a lump sum recovery be undesirable in any case, the
Divisional Officer may permit, for recorded reasons, the recovery to be effected
gradually as the materials issued to the contractor are actually used in the
116 WORKS ACCOUNTS
construction and the items of work in which they are used are paid for by an
on account payment.
10.3.9. As the issue of materials to contractors under the foregoing rules
is permissible solely for the bona fide requirements of Government works, Sub-
divisional Officers should maintain a numerical account in K.P.W. Form 31-A so
as to ensure that the aggregate of the quantities of any or all materials issued
to a contractor from time to time, for use on a work, is within the estimated
requirements of the contract. This precaution is particularly necessary when the
rates at which any materials are issued under paragraph 10.3.4 are lower than the
prevailing market rates, or the latter are expected to rise appreciably.
(c) Return of surplus materials by contractors
10.3.10. Government do not undertake to take over from contractors,

whether before or after the completion or determination of contracts surplus
materials which were originally procured by the contractors for themselves or
were issued to them and charged to their accounts under paragraph 10.3.6.
Such materials are the property of the contractors and can be taken over by
Government, if required, for use on other works in progress only by special
arrangement and at the prevailing market rates. If the materials were originally
supplied by Government the price allowed to the contractor on re-acquisition
should not exceed the amount charged to the contractor excluding the element
of storage charges, if any.
Note.— Contractors are, however, not at liberty to remove from site of works without the
written permission of the Divisional Officer, materials which have been issued to
them for use on a work, and a stipulation to this effect should ordinarily be
entered in the agreements with them.
(d) Tools and plant lent for use
10.3.11. The rules in paragraph 10.3.1. to 10.3.10. do not apply to tools and
plant. Articles borne on the Tools and Plant Account of the Division may, in
accordance with paragraph 316 of the Kerala Public Works Department Code, be
lent temporarily on hire to contractors for use on Government works (See also
paragraph 7.3.3. and 7.3.7).
WORKS ACCOUNTS 117
III ISSUE DIRECT TO WORKS
(a) Detailed accounts of materials issued

10.3.12. In all cases, materials issued direct to a work should, as soon as
received be brought to account as indicated below:—
Source of receipt of Head of Account Value to be Mode of effecting
materials to be credited credited adjustment of cost
1. Stock (including Stock At issue rates Through stock
manufacture) accounts at the end
of the month.
2. Transfer from Work concerned At a valuation By a special
another work made under transfer entry in
paragraph K.P.W. Form 50
10.3.14(d). prepared as soon
as the materials
are received.
3. Transfer from S u s p e n s e At rates
another division, do.
a c c o u n t charged by the
department or “Purchase” of the division,
Government work department or
Government
concerned.
4. Suppliers At rates
do. payable to the do.
suppliers under
their contracts.
The full value credited to the head concerned should be debited to the
work (paragraph 10.3.13) and the quantities entered in the Register of Materials-
at-site Accounts, K.P.W. Form 31.
Note.—Materials already brought on to the site of work and accounted for as receipts
in the site accounts should be shown as minus receipts in the same when they
are transferred to stock or to another work, etc.
118 WORKS ACCOUNTS
10.3.13. (a) In the case of minor estimates, when materials are issued
direct, their cost is treated as a final charge in the accounts of the work. No
further adjustment is necessary when the materials are actually issued up on the
work.
(b) In the case of major estimates the cost of the materials issued direct is
debited to the suspense head “Materials” as prescribed in paragraph 10.5.7. (See also
paragraph 10.5.14).
(c) The cost of petty items of materials i.e., those estimated to cost ` 1,000
and less should, however, be charged ab initio to the sub head concerned in the
accounts of major estimates.
(b) Disposal of surplus materials
10.3.14. (a) Materials issued to works in excess of requirements may be

transferred to other works if they are required or to stock provided that they are
serviceable and certain to be required.
(b) All surplus materials at the site of works transferred to works in progress
or brought on to the stock account in accordance with paragraph 310 of the Kerala
Public Works Department Code, should have their value credited to the work concerned
and debited to the work to which they are transferred or to the stock account, as the
case may be.
(c) No credit should be allowed to a work on account of surplus materials if they
are likely to be of any use within a reasonable time, but a list of the materials should be
maintained in the Sub-divisional and Divisional Offices as a supplement to the “Priced
Stores Ledger”, unless the Superintending Engineer considers this unnecessary.
(d) Materials returned store or transferred to other works should be priced
within current market rates, any resultant loss being borne by the work to which they
were originally issued and the disposal of materials being shown in the materials-at-site
accounts also.
(e) The loss by the disposal of surplus materials at less than the book value—
vide paragraph 368 III (b) of the Kerala Public Works Department Code—should be
debited to the work for which the stores were originally purchased.
Note.—These rules do not apply to surplus materials which were originally procured
by contractors for themselves or were issued to them and charged off to their
accounts under paragraph 10.3.6. (See paragraph 10.3.10).
WORKS ACCOUNTS 119
(c) Verification of unused balances
10.3.15. Unused balances of materials charged direct to works should be

verified at least once a year in the manner prescribed in paragraph 303 of the
Kerala Public Works Department Code. Whenever this verification is made, a
report of verification of the materials should be prepared by the Sub-divisional
Officer in K.P.W. Form 29 and submitted to the Divisional Office.
Note.—(1) The difference between the closing balance and the actual balance as veri-
fied—vide line 3 of Form 29—may be due to differences between the actual
receipts or issues with those entered in the accounts, or to errors in measure-
ments or in posting entries or losses of materials due to carelessness, negli-
gence or fraud on the part of the subordinates. These differences should be
carefully investigated and adjusted in accordance with Note 2 below.
Note.—(2) The rules in paragraphs 7.2.35.and 7.2.36. regarding verification of stock apply
mutatis mutandis to verification of materials-at-site of works with the excep-
tion that the value of materials found in excess and recoveries of shortages/
losses, if any, should be credited to the appropriate sub head of the work.
10.3.16. (a) A similar verification of the unused balances of materials must invari-
ably be made on the completion of a work, but on or before the completion of a work,
when no more materials are required for use in construction, steps should first be taken to
dispose of all surplus materials by transfer or sale, so that (1) the accounts of the work
may promptly receive such credits as may be admissible under paragraph 10.3.14 and (2)
the unused surplus materials may be reduced to a minimum.
(b) On the completion of a work, the surplus materials-at-site should be

disposed of without delay in accordance with paragraphs 310 to 315 of the Kerala Public
Works Department Code.
10.3.17. If the officer in direct charge of a work is transferred before the accounts of
it are closed, the unused materials-at-site of the work should be verified by the relieving
officer in company with the relieved officer and the report prescribed in paragraph
10.3.15.should be prepared by the Sub-divisional Officer and submitted to the Divisional
Office.
120 WORKS ACCOUNTS
10.3.18. A physical verification of unused materials under each principal

item with the balance shown in K.P.W. Form 31 should be made annually in
respect of all works the accounts of which were open on the last day of the
official year and a report submitted to the Divisional Officer in K.P.W. Form 29,
but it is not necessary that the balances should be verified at the close of the
year if—
(1) the work has been under construction for not more than three months,
(2) the accounts of the work are expected to be closed within three months,
or
(3) the balances were verified at any time during the year.
10.3.19. After the completion of a work, theoretical calculations of the

principal items of materials used on each sub-head should be made in the register
showing the clearance of suspense head “Materials” K.P.W. Form 34 and
compared with the quantities issued as per K.P.W. Form 31. On the basis of
theoretical calculations, the sub head ‘Materials’ should be cleared by debiting
the cost of materials to the concerned sub-heads at the standard issue rates or
the market rates (in the case of items not borne on the stocks of the
Department) prevailing at the time of completion of the work; any plus or minus
balance being transferred to the sub head “Additional charges for materials
issued to contractors/Direct to works”. See also paragraph 10.5.10). *While
furnishing to audit the final bills on completion of a work the Divisional Officers
should ensure that the bills are complete and a statement of theoretical
calculation and actual consumption of departmental materials in K.P.W. Form 23
(Part V) is enclosed.
Note.—(1) Differences between the total issues to the work and the quantities actu-
ally used up in construction may be due to (1) adoption of the method of
determining the actual consumption, (2) unreasonable wastage or (3) short-
age in some other form.
Note.—(2) Differences due to the adoption of the mode of determining the quantities
should be set right if considered necessary, by suitable revision of the
method in use.
Note.—(3) Other shortages or losses should be adjusted by recovery or write off

under the orders of competent authority.
* Addition. G.O. (P) 799/81/Fin. dated 25-11-1981.
WORKS ACCOUNTS 121
10.4. ADJUSTMENTS
10.4.1. In addition to cash payments and issues of materials there are

other transactions relating to the accounts of work which are of the nature of
adjustments usually recorded in the Transfer Entry Book of the Divisional Office.
The detailed rules governing such transactions are given in Chapter 8.
10.5. WORKS ABSTRACTS
I. INTRODUCTORY
10.5.1. An account of all the transactions relating to a work during a

month, whether in respect of cash, stock or other charges, should be prepared
by the Sub divisional Officer in one of the Works Abstract Forms. In the case
of major estimates a separate account should be maintained for each sub-head
estimated to cost not less than `.5,000 and the remaining sub-heads should be
lumped together but see Note 2 below paragraph 10.5.2. For such works the
detailed Form of Works Abstract K.P.W. Form 27 should be used. For other
minor estimates the simpler form of Works Abstract K.P.W. Form 28 should be
used in which the account of the final outlay is not kept by sub-heads.
10.5.2. The estimate account and completion certificate of petty works i.e.,
works costing more than ` 2,500 each should be prepared on a single form,
Petty Works Requisition and account K.P.W. Form 26 and separate Works
Abstract and Registers of Works are not necessary.
Note.—(1) Percentage charges on account of Establishment, Tools and Plant,
Pensionary charges and Audit and Accounts, levied on works expenditure,
under rules 5 and 6 of Appendix 2 of the Kerala Account Code, Volume III,
reproduced in Appendix 9 of this Code, should not be shown in Works
Abstracts and Registers of Works, though they are eventually included
in the cost of works—vide Note 2 to paragraph 22.4.6.
Note.—(2) In the case of works executed through contractors with whom agreements
for completed items of works have been entered into, all necessary details,
i.e., up-to-date quantities, rates and amount paid for each item of work as
well as totals pertaining to each sub-head are available in the contractor’s
bills. The maintenance of accounts by sub-heads is therefore, not
necessary in such cases.
122 WORKS ACCOUNTS
Note.—(3) The Superintending Engineer may dispense with the maintenance of ac-
counts by sub-heads for any work if he considers that the circumstances
of the work render such accounts useless or impossible to maintain. In
such cases a copy of the orders, specifying the reasons, should be for-
warded to the Accountant General.
10.5.3. Ordinarily there should be one Works Abstract monthly for each
working estimate, but if the estimate is for a large work which is divided into
several sub-works, it will usually be found convenient to prepare a Works
Abstract separately for each sub-work.
II. CLASSIFICATION AND RECORD OF FINAL CHARGES
(a) Major Estimates

10.5.4. The division of a major estimate into sub-heads for the purposes
of accounts is guided usually by the classification sanctioned in the abstract of
the estimate. See paragraph 84 of the Kerala Public Works Department Code.
In all cases miscellaneous charges of a general nature which do not pertain to
any sub-head in particular, may be treated as separate sub-heads, being grouped
under one or more heads, e.g., “Works-charged Establishment”, “Contingencies”,
etc. See paragraphs 42, 43 and 90 of the Kerala Public Works Department Code.
Note.—When the number of sub-heads of an estimate is large it will be convenient to
assign a number to each sub-head and to prefix this number to the name of the
sub-head, wherever it is used on vouchers, Works Abstracts, Registers of Works
or other accounts.
10.5.5. After a major estimate has been sanctioned it may be decided to
make a change in the method originally contemplated for the execution of the
work. In such a case the original abstract should be recast in accordance with
paragraph 84 of the Kerala Public Works Department Code. The details of cost
and quantities already approved by competent authority should be rearranged
and the revised abstract should be approved by the Divisional Officer and
thereafter treated as the sanctioned abstract of the estimate for all accounts
purposes.
10.5.6. If the number of sub-heads in the working estimate for a work or
sub-work is large, it is permissible to break up the estimate into two or more
parts, and to treat each part as sub-work for the purposes of accounts; but no part
of an estimate can be separated from the rest, if any contract for the execution of
WORKS ACCOUNTS 123
works connected with it covers also work connected with the other parts. It is
advisable to adopt this course if one more parts of a work or sub-work are
completely executed along in advance of the others and no useful purpose will
be served by keeping open the accounts of the completed parts.
10.5.7. (a) The account of each sub-head in the Works Abstract should
ordinarily exhibit:—
(1) “amount” i.e., total charges finally classified under the sub-head;
(2) “progress” i.e., total quantities executed from time to time; and
(3) “rate of cost”, i.e., cost per unit on the basis of the recorded “amount”
and “progress”.
(b) In the case however, of sub-heads which have been lumped together
under paragraph 10.5.1.above, or sub-heads representing items of work which cannot
be expressed in quantities, no quantities are shown in the abstract of estimate and the
record of “progress” and “rate of cost” in the accounts is not necessary, the entries in
the “amount” column being sufficient.
(c) In other cases the “progress” and “rate of cost” should be recorded in
the accounts both during the progress of construction and on completion of work, but
the monthly record thereof under any sub-head may, during the progress of construc-
tion, be dispensed with in the following cases under the written orders of the Divi-
sional Officer which should specify reasons:—
(1) If the duration of construction under the sub-head is not expected to
be more than three months.
(2) If the quantities executed are not in the same units as those specified
in the estimate or they cannot be expressed even roughly except on
or towards the completion of the work.
10.5.8. When provision is made in the abstract of estimate separately for
“labour” and “materials” under any sub-head, the account of the cost of all
materials issued to the work from stock, or by purchase, manufacture or
transfer, should be kept under a single head, entitled “Materials”, the sanctioned
amount of which should be taken to be equivalent to the aggregate provision
for “materials” in the estimate. This should be treated as a suspense head and
the details of it recorded in K.P.W. Form 31 (vide paragraph 10.3.12) which
should accompany the Works Abstract. The “labour” divisions only will thus
appear in the Works Abstract as separate sub-heads of final outlay. During the
124 WORKS ACCOUNTS
progress of the work, the expenditure recorded under those sub-heads will be
exclusive of the cost of materials, but on the completion of the work, the gross
cost of each sanctioned sub-head of work, inclusive of the cost of materials,
should be placed on record by making entries in the Register of Works in the
manner indicated in paragraph 10.3.19.
10.5.9. When the sub-heads of work are divided into “labour” and
“materials”, the “rate of cost” of the labour charges relating to each sub-head can
be watched separately and the necessary control over the expenditure on materials
can be exercised through the suspense head “Materials” and the detailed statement
in K.P.W. Form 31 supporting the entries under that head. It is unnecessary,
therefore, for purposes of financial control over the outlay, either to record in the
Works Abstract, month by month during the progress of construction, the outlay on
the materials relating to each sanctioned sub-head of the estimate or, to strike the
inclusive “rate of cost” of the whole sub-head monthly.
10.5.10. The charges classified under a final sub-head should include all
ordinary expenses incidental to construction. If any part of a work is pulled down
and rebuilt to any serious extent, the extra charges for construction should
ordinarily be debited to the sub-head concerned unless they are recoverable from the
contractor under the terms of his agreement. But if the amount involved be so
large as to affect sensibly the cost or rate of the sub-head, it may be debited to the
sub-head “Contingencies”, instead or, with the sanction of competent authority, to a
new sub-head additional to the original sanctioned sub-heads of the estimate.
10.5.11. In the accounts of major estimates, a final sub-head, entitled
“Additional charges for materials issued to contractors /Direct to works” should
be opened for the record of the under mentioned debits/credits.
(i) Differences between the rates charged to the contractors under para-
graph 10.3.4. or 10.3.5. as the case may be and the actual cost to
Government—vide paragraph 10.3.7.
(ii) Carriage and incidental charges in connection with materials issued
to contractors if under paragraph 10.3.1., they are chargeable to the
work.
(iii) Balances outstanding under the suspense head “Materials” after trans-
ferring the cost of materials to the various subheads, vide paragraph
10.3.19.
WORKS ACCOUNTS 125
10.5.12. If any receipts or recoveries are credited under the rules to the
account of a major estimate, a special sub-head should be opened in the Works
Abstract for the reception for all such credits.
(b) Minor estimates
10.5.13. The account of all final outlay on a Minor Estimate should be kept in
a single column, headed “Final charges”, in Works Abstract K.P.W. Form 28.
III. SUSPENSE ACCOUNTS
(a) General
10.5.14. In addition to the head “Final charges” or the final sub-heads in
the case of Major Estimates, a few suspense accounts are opened in Works
Abstract to record transactions of a temporary character which are either not
adjustable as final outlay in the accounts of the works concerned or the correct
classification of which cannot be immediately determined . These accounts
are:—
(1) “Materials”—for the record of the cost of materials, issued direct to
works.
(2) “Purchases”—for the record of the value of materials obtained (vide
paragraphs 10.3.7.and 10.3.12) and their subsequent payments.
(3) “Contractors—Secured advances”—for the record of secured ad-
vances and of their recoveries.
(4) “Contractors—Other transactions/Advance Payments”—for the
record of all other debits or credits to contractors awaiting settlement
and
(5) “Labourers”—for the record of unpaid wages of labourers and of
their subsequent payment.
(b) Materials accounts
10.5.15. The suspense account “Materials” has already been referred to in
paragraphs 10.3.7 and10.3.12. This sub-head should be opened in the Works
Abstract of Major Estimates if the materials are issued direct to works.
(c) Purchases account
10.5.16. This account is intended for the record of all transactions
connected with the purchase of stores for specific works.
126 WORKS ACCOUNTS
The procedure prescribed in 12.2.5. (c) for the purchase of stores for
stock apply mutatis mutandis to purchase of materials for specific works also
with the difference that the value of materials should be debited to
“Contractors—Other transactions/Advance Payments”, “Materials” or “final
charges” as the case may be.
(d) “Contractors” and “Labourers” accounts
10.5.17. Advances made to contractors and suppliers under paragraph 181
of the Kerala Public Works Department Code whether on the security of materials
or otherwise as well as all recoverable payments made under proper authority to
labourers and others on behalf of contractors, should be treated as advances
made on account of the work concerned. They should not be charged to the
general suspense head “Miscellaneous Public Works Advances”, but
incorporated in the Works Abstract as suspense transactions. The head
“Contractors—secured Advances” is intended solely for advances made to
contractors on the security of materials brought to site under paragraph
10.2.33.and the head “Contractors—Other transactions/Advance Payments” should
be used for all other transactions, including the advances for supplies permitted
on production of railway receipts.
10.5.18. The head “Contractors—Other transactions/Advance Payments” is
intended also for watching the ultimate payment of the unpaid balances of
contractors’ accounts. Similarly, the head “Labourers” is meant for the clearance
of the unpaid wages of labourers. If a running account bill or muster roll is
only partly paid, the total amount due thereon as value of work done or
supplies made should be brought to account in the Works Abstract as final
charges or as expenditure on the sub-heads concerned, and the amount
remaining unpaid should be shown as minus entry in the appropriate suspense
column “Contractors—Other transactions/Advance Payments” or “Labourers”.
10.5.19. The Form of Works Abstracts provide a column for each of the
suspense accounts enumerated in paragraph 10.5.14. The use of the head
“Materials” is explained in paragraph 10.5.8 and the foot notes printed on the
forms of the Works Abstracts explain the mode of making both original and
adjusting entries under the other suspense heads.
10.5.20. If any wages of labourers remain unpaid after the completion of a
work, the accounts of the work may be kept open for a period of one month,
which may be extended to three months at the discretion of the Divisional officer.
Thereafter the accounts of the work should be closed, the balance under the
WORKS ACCOUNTS 127
suspense head “Labourers” being left unadjusted. This amount should be shown
in any Completion Report or Statement that may be prepared under the Rules in
paragraph 199 of the Kerala Public Works Department Code, by a special remark, as
a liability against the work, and should be excluded from the total final expenditure
on the work, so as to arrive at the amount actually brought to account.
Note.—If unpaid wages of labourers are claimed and paid subsequent to the closing of
the accounts of a work, the payment should ordinarily be charged against a fresh
estimate under the same head of service as the original work, a suitable note
being recorded by the Divisional Office against the closing entry relating to the
original work in the Registers of Works. Where, however, it may prove more
convenient, the accounts of the work may be reopened at the discretion of the
Divisional Officer.
10.5.21. The accounts of a contractor for work should be closed as soon as his
contract is completed. If he delays to receive final payment for more than one month after
the final bill has been passed, a note to this effect should be recorded on the bill, the
account of the work as passed on the bill should be incorporated in the Works Abstract
on the authority of the bill and the balance due to him should be removed from the
accounts of the work by credit to the head “Public Works Deposits”, to be dealt with
thereafter under the rules relating thereto.
Note.—(1) If the final account of a contractor shows that he has already been overpaid
or that the account closes with a balance due by him, the account should be
settled by a recovery in cash or otherwise; but if an immediate recovery is
not practicable, the balance should be removed by debit to the head “Mis-
cellaneous Public Works Advances”.
Note.—(2) Where the amount of a bill is credited to the head “P.W. Deposits” but the
contractor subsequently obtains a decree from a Court, the entire expendi-
ture in satisfaction of the decree should be charged on the Consolidated
Fund of the State irrespective of the fact that a part of the amount might have
already been voted out of the Consolidated Fund and kept as a deposit in
Public Account. Before making payment in satisfaction of the Court decree
the amount standing to the credit of the contractor under “P.W. Deposits”,
should, however, be cleared by reversing the initial adjustment. These pro-
visions will not, however, be attracted where a refund of the security deposit
or revenue is made in satisfaction of a court decree as much an item cannot
be treated as an item of expenditure within the meaning of Article 202 (3) (e)
of the Constitution.
128 WORKS ACCOUNTS
10.5.22. When works have been completed and delay is anticipated in

settling suppliers bills for purchases effected for works, the following procedure
should be adopted for the closing of the works accounts.
(i) In case a private supplier delays receiving final payment, the liability
(anticipated) should be incorporated in the works accounts by
removing the outstanding credits under the suspense account
“Purchases” to “P.W. Deposits”.
(ii) In cases of delay in receiving debits for supplies made by other
Governments (e.g., Director General, Supply and Disposals,
Government of India, etc) the liability (anticipated) should be dealt
with as prescribed in (i) above; but such credits should be exhibited
under a distinct class “sums due to other Governments on closed
account”.
(iii) Credits outstanding credits under the suspense account “Purchases”
are cleared by incorporating the liability in the works accounts by
contra credits, in advance, to the remittance head “Items adjustable
by Public Works”.
Note.—When the outstanding credits under the suspense account “Purchases” are
cleared as indicated in the above paragraph the items should be deleted from
the “Register of Outstanding liabilities” (K.P.W. Form 54 modified) by giving
necessary reference in the ‘remarks’ column of the Register.
10.5.23. Disbursing Officers are responsible for keeping a strict watch over
the balances under the suspense accounts “Purchases”, “Contractors” and
“Labourers” with a view to prompt adjustment by payment/recovery, settlement
of account or detailed measurement, as the case may be. For this purpose the
statement headed “Details of Contractor’s closing balances” and the suspense
head “Purchases” and the record of unpaid wages maintained under paragraph
10.2.6. (d) should be examined monthly. Subject to the provisions of
paragraphs 10.5.20, 10.5.21 and 10.5.22 these accounts should be cleared before
the accounts of a work can be closed on completion.
IV. LIABILITIES AWAITING INCORPORATION
10.5.24. Liabilities are not incorporated in the accounts of works except in

the following cases:—
WORKS ACCOUNTS 129
(a) Unpaid balances of partly paid running account bills or muster rolls are
invariably incorporated—vide paragraph 10.5.18.
(b) The value of materials received from sources other than stock (including
manufacture), whether for issue to contractors or for issue direct to works, is at once
brought into the accounts of works even though payments to suppliers and
adjustments crediting the transfer accounts concerned may not be made at once—
vide paragraphs 10.3.7., 10.3.12 and 10.5.22.
(c) Wholly unpaid muster rolls and bills of contractors and suppliers are
sometimes taken to account—vide paragraphs 10.5.20 and 10.5.21.
10.5.25. Disbursing Officers are, however, responsible for keeping a strict
watch over all liabilities with a view to settle them promptly. Money
indisputably payable should never be left unpaid. It is no economy to
postpone inevitable payments, and it is very important to ascertain, liquidate and
record the payment of all actual obligations at the earliest possible date—vide
Article 47 (b) of the Kerala Financial Code.
10.5.26. If any liabilities of works are incurred on behalf of contractors
under the provisions of paragraph 10.2.32.arrangements should be made for
withholding sufficient balance from their bills or for making necessary recoveries
from them in due course. On the analogy of the rule in paragraph 10.1.5.all
records on the authority of which liabilities may be liquidated or incorporated in
the accounts should invariably specify (1) the full name of the work as entered
in the estimate, (2) the name of the sub-head thereof, if any, and (3) the
recoverable charges, if any, with the name of the contractor or other person
from whom recoverable.
V. RECORD OF PROGRESS
10.5.27. Entries of “progress” in the Works Abstract—vide paragraph 10.5.7

should be supported by details in the statement provided for the purpose on the
reverse of the works abstract form. These details should be furnished by the
Engineer or subordinate in charge of the work or by any executive officer or
subordinate detailed for the purpose, and should be based on entries already made
in the measurement book. Their compilation from measurement books, vouchers or
other records, by members of the office establishment should not be permitted. The
following points should be specially borne in mind:—
(i) Only “quantities” actually measured and paid for should be reported as
“progress”.
130 WORKS ACCOUNTS
(ii) The progress reported should specify quantities executed “up-to-

date”, sets of earlier measurements covered or superseded, by latter
ones being ignored.
(iii) The progress of an item of work should be so reported as to describe
as approximately as possible, in terms of the unit adopted, the quantities
of work executed up to the required standard.
Note.—It is recognised that perfect accuracy cannot always be secured in making
intermediate reports of progress. A fairly reliable record is all that is neces-
sary, but if the nature of the work makes it impossible or difficult to achieve
this in practice, reports of progress may be dispensed with in cases covered
by paragraph 10.5.7.
VI. PREPARATION, COMPLETION AND DISPOSAL OF

WORKS ABSTRACTS
10.5.28. The Works Abstract should be prepared in the Sub-divisional

Office in the first instance. It should be posted day by day from the cash book
and the connected bills of contractors and suppliers. At the end of the month
stock and adjustment transactions should be added. Cash refunds and write
back of final charges should be posted as minus entries.
In the detailed statements provided for the purpose quantities of work
executed should be posted from measurement books or other sources and the
closing balances of contractor’s accounts should be detailed so as to prove the
correctness of the up-to-date totals under the suspense heads(1) “Contractors—
Secured advances” and (2) “Contractors—Other transactions/Advance Payments”.
The closing balances arrived at under the suspense heads “Purchases” and
“Labourers” in each case should be reconciled with the connected records of
outstanding liabilities and unpaid wages and their correctness should be certified
over the dated initials of the Sub-divisional Officer. The Works Abstract should then
be forwarded in original to the Divisional Office, where all necessary completing
entries will be made in respect of the direct charges and adjustments made by the
Divisional Officer and the abstract checked and closed under the supervision of the
Divisional Accountant who should record a certificate in the following form:—
“This abstract has been checked by me. I have personally compared all the
items in the ‘Details of Contractors’ closing balances’ with the contractors’ ledger
WORKS ACCOUNTS 131
and the items under the suspense account “Purchases” with those in the
register of outstanding liabilities and found them correct”.
#The certificate should be submitted to the Accountant General, Chief
Engineer and Superintending Engineer along with the schedule of works
expenditure specified in para 22-4-15 (3) in the case of major works, the estimate
cost of which is more than ` 4 lakhs
Note—(1) The posting of stock and adjustment transactions may, if preferred, be
done entirely in the Division Office.
Note—(2) Postings made in the Sub-divisional Office should be in black ink and all
postings and corrections made in the Divisional Office in red ink.
Note.—(3) Office copies of Works Abstracts need not be kept; but, before the Works
Abstracts are sent to the Divisional Office the up-to-date totals should be
entered in the returns for the following month and these should be cor-
rected, if necessary, on receipt bank of the Works Abstracts from the Di-
vision Office.
10.5.29. When finally completed in all respects, all the Works Abstracts of a
month should be examined by the Divisional Officer and any explanations necessary
called for from the Sub-divisional Officer. The monthly examination of the Works
Abstracts is an important part of the duty of the Divisional Officer and must not be
omitted. He must initial (and date) them in token of the performance of this duty.
10.6. REGISTER OF WORKS
I. FORMS OF REGISTERS OF WORKS AND THEIR PREPARATION
10.6.1 (a) The permanent and collective record of the expenditure incurred in
the Division, during a year, on each work is the Register of Works. This record is
maintained in the Divisional Office. The object of this register is to get an analysis
of cost of sub-works, and sub-heads, the rate of cost of work, and to foresee as far
as possible excess over estimates.
(b) There are two forms of Registers of Works corresponding respectively to
the two forms of Works Abstracts, K.P.W. Forms 38 and 39 for Major and Minor Estimates.
The detailed form should be used for Major Estimates other than those referred to in Note
2 below paragraph 10.5.1.and the simpler form, for Minor Estimate. In respect of petty
works no record is necessary beyond the Petty Works Requisition and Account K.P.W.
Form 26 which is self-explanatory.
# Addition. G.O.(P). No.297/93/Fin Dated 28-04-1993.
132 WORKS ACCOUNTS
10.6.2. The Registers of Works are posted monthly from Works

Abstracts. A separate folio or set of folios of K.P.W. Form 38 should be
assigned to each major estimate but entries relating to two or more minor
estimates can be made on a single page K.P.W. Form 39. When separate Works
Abstracts are prepared, under paragraph 10.5.6. for the sub-works or parts of a
major estimate the transaction relating to each Works Abstract should be posted
separately and an abstract for the entire work should be prepared on a separate
folio or set of folios for comparing the costs of the work and its sub-works with
the provision in the estimate. The following instructions should receive special
attention:—
(a) The Register of Works is not a classified account of works; for facility of
reference it should be supplied with an index which should be sub-divided under the
prescribed heads of account classification.
(b) The sanctioned amount of estimate should be entered in respect of each
work. When supplementary estimates are sanctioned, the additional amount sanctioned
should be entered below the corresponding amounts of the original estimate and both
totaled. But when a revised estimate is sanctioned, the register of the original estimate
should be closed and the revised estimate should be entered on a fresh folio, prominently
marked, “Revised Estimate” in red ink, and a reference to the folio on which the
original estimate is to be found should be entered thereon.
(c) In the case of works for which specific appropriations are sanctioned
individually, vide paragraph 5.3.3. the amount of appropriations for the year should
be noted in the register at the top of the page, any additions or deductions made
during the year being noted in the same place.
(d) The blank vertical columns in K.P.W. Form 38 should be utilized for the
final sub-heads of the estimate and for as many of the suspense heads as may be
operated upon, but the sub-columns for “quantity” and the horizontal columns for
“rate of cost” should be left blank in respect of sub-heads for which there are no
quantities in Works Abstracts (vide paragraph 10.5.7)
(e) In K.P.W. Form 39 the final charges on works should be posted in the
column ‘Total value of work done’ and the single column “Suspense Accounts” should
embrace the transactions under all the suspense accounts.
II. EXAMINATION BY DIVISIONAL OFFICER
10.6.3. Before the date of submission of the monthly accounts to the

Accountant General the posting of the Registers of Works should be completed
WORKS ACCOUNTS 133
and the registers should then be laid before the Divisional Officer for review. The
monthly account of each work on which there has been expenditure during the
month should be initialed (and dated) by the Divisional Officer in the column set
apart for the purpose, in token of his having examined the entries and found them
correct. Actual as well as probable excesses, whether in the total cost of a work or
sub-head or in the rate of cost of a sub-head, should receive special attention, and
Works Slips in K.P.W. Form 37 should be prepared and submitted to the
Superintending Engineer when necessary (vide paragraph 29 of the Kerala Public
Works Department Code).
Note—(1) If the transactions of a Division are very large, the Divisional Officer may
allow an extra period of a few days for the completion of the Register of
Works, but the submission of the monthly accounts to the Accountant
General and the completion of the Works Abstracts (paragraph 10.5.28.)
should not be delayed on this account.
Note—(2) It should be seen, with special reference to works on which there have been
only petty or no transactions during the previous two or three months, if
there are circumstances justifying the retarded progress of expenditure. If
any such works have been stopped or are known to be nearing completion,
the delay in closing their accounts should be enquired into; See also
paragraph 10.6.4. If the slow progress of expenditure is due to delays in
measuring the work done or in the settling up bills, the cause at work should
receive attention.
III. CLOSING THE ACCOUNTS ON COMPLETION OF WORKS
(a) Settlement of liabilities and assets and clearance of

suspense accounts
10.6.4. It is an object of great importance to close the accounts of works as
soon as possible after the actual work of construction is completed (vide paragraph
25 of the Kerala Public Works Department Code). If there is necessarily any delay
in closing the accounts, it should be seen in particular that further charges are not
incurred witho ut the permission of the Divisional Officer.
10.6.5. Before the accounts of a work can be closed on its completion, it
should be seen that any adjustments of cost necessary under the rules, e.g.,
paragraphs 55 to 59 of the Kerala Public Works Department Code have been duly
made in the accounts, that all liabilities not originally brought to account have either
been liquidated or since brought to account and that the balances under the
134 WORKS ACCOUNTS
suspense accounts “Purchases”, “Contractors” and “Labourers” have been

cleared (vide paragraphs 10.5.16 to 10.5.20). If the whole or any part of the
expenditure on the work is recoverable from another department, Government,
local body or individual, action should be taken to effect or complete the
necessary recovery before the accounts of the work are closed.
10.6.6. The steps to be taken to clear the suspense head “Materials” have
been detailed in paragraphs 10.3.14 to 10.3.17 and 10.3.19.
10.6.7. The sub-head “Additional charges for materials issued to
contractors/Direct to works” (paragraph 10.3.7) should received the special
attention of the Divisional Officer who should, if necessary, investigate large
closing balances under this head before permitting the accounts of the work to
be closed. It is not necessary to clear this head by transferring the charges
booked under it to other final sub-heads, but profits or losses which are not
clearly traceable to known differences between the rates chargeable to
contractors and the actual cost to Government should not be accepted as
correct without close examination.
10.6.8. The accounts of annual maintenance estimates must be closed in
the month fixed by Government, under paragraph 109 of the Kerala Public Works
Department Code as the last month of the working year for the purpose.
Ordinarily, it should be possible to complete all the repair works and to settle the
accounts of contractors and other suspense accounts before the expiry of the
working year. If, in any exceptional case, any work remains to be done and, in
accordance with paragraph 111 of the Kerala Public Works Department Code, it
is proposed to carry it on to completion, action should be taken as under:—
(1) The expenditure incurred in the next working year should be treated as
expenditure against the annual maintenance estimate for that year.
(2) The suspense accounts of the work should be closed in the last month of
the working year, by transferring the balances of all those accounts to the general
suspense accounts “Public Works Deposits” or “Miscellaneous Public Works Ad-
vances”, as the case may be, which should be relieved in the following month by
retransferring the balances to the suspense accounts concerned in the accounts of
the maintenance estimate for the next working year. All unsettled liabilities and assets
should then be treated as those pertaining to the next working year’s estimate.
WORKS ACCOUNTS 135
(b) Closing entries and review of expenditure
10.6.9. (a) When the work is completed and the accounts of it have been
settled and written up as indicated in paragraphs 10.3.19 and 10.6.5 a double red ink
line should be ruled below the final entries and a note made in red ink. “Work
completed in…………………..20.......” This note should be signed by the Divisional
Officer in token of his satisfying himself that all action has been taken under those
paragraphs. It will be the authority for treating the accounts of the work as closed,
and a work should not be reported as completed in the Divisional Accounts unless
this authority has been placed on record.
(b) If it is a Deposit Work, steps should be taken promptly to surrender the
unexpended balance, if any, of the deposit with the approval of the Divisional Officer.
(c) Excess over estimates

(I) EXCESSES PASSED BY DIVISIONAL OFFICER
10.6.10. If the total expenditure on the work is excess of the sanctioned

estimate and the excess if passed by the Divisional Officer under this powers,
the words “Excess passed by me” should be added to the completion note
recorded under paragraph 10.6.9.
(II) COMPLETION REPORTS AND STATEMENTS
10.6.11. If, however, the excess is not within the Divisional Officer’s powers
to deal with, a detailed Completion Report in K.P.W. Form 42 should be prepared or
the item should be included in a consolidated Completion Statement of Works and
Repairs in K.P.W. Form 43 as may be required under the rule in paragraph 199 of the
Kerala Public Works Department Code. The completion note in the Register of
Works should then be amplified thus:— “Work completed in
……………..20………….Completion Report/Statement submitted with this office letter
No…………………dated…………………….20………”.
The orders passed subsequently by higher authority on the excess reported in
the Completion Report or Statement should also be noted in the Register of Works
to complete the record.
136 WORKS ACCOUNTS
IV. CORRECTION OF ERRORS AFTER CLOSING ACCOUNTS
10.6.12. Should an error or omission in the recorded expenditure of a work

come to light after its accounts have been closed (See paragraph 25 of the
Kerala Public Works Department Code), the account may be reopened in order to
rectify the error or omission unless the amount involved is not more than ten
rupees in which it will be sufficient to make a note of the error or omission in
the relevant document concerned.
V. SCHEDULE OF RATES
10.6.13. To facilitate the preparation of estimates and also to serve as a

guide in settling rates in connection with contract agreements, a schedule of rate
for each kind of work commonly executed should be maintained in the division
and kept up-to-date. It should be prepared on the basis of the rates prevailing in
each locality and necessary analysis of the rates for each description of work
and for the varying conditions thereof should, so far as may be practicable, be
recorded.
The rates entered in the estimate should generally agree with the schedule
rates. But where from any cause, the latter are not considered sufficient, the
deviation should be explained in detail in the report on the estimate.
10.7. CONTRACTOR’S LEDGER
[The rules in this section apply to all transaction with contractors in

connection with the contracts or jobs undertaken by them, whether relating to
the execution of works or to the supply of materials for works or stock.]
I. FORM AND USE OF THE LEDGER

10.7.1. The account relating to contracts should be kept in the
Contractor’s Ledger, K.P.W. Form 41, a separate folio or set of folios being
reserved for all the transactions with each contractor for whom a personal
account is maintained—vide paragraph 10.7.2.
10.7.2. A personal account should be opened in the ledger for every

contractor, whether or not a formal contract has been entered into with him
unless the work or supply entrusted to him is not important and no payment is
made to him except on a First and Final Bill form on completion. If any
materials are issued to the contractor or any payments are made on his behalf, a
ledger account must be opened.
WORKS ACCOUNTS 137
II. POSTING THE LEDGER
10.7.3. The Contractor’s Ledger should be written up in the Divisional

Office. It is not necessary for the Sub-divisional Officer to maintain a similar
ledger in his office but if he maintains one, the Divisional Office may not require
him to furnish extracts there from.
Note.—As the Sub-divisional Officers are responsible for the clearance, from works
accounts of all out standings against contractors, vide paragraph 7.2.24, (b),
a list of balances due to and from piece-workers and contractors should be
maintained by them, and this may preferably be done in the same form as the
Contractor’s Ledger.
10.7.4. Except when a contractor’s account is to be closed and the
procedure prescribed in paragraph 10.5.21 is observed in respect of unpaid bills,
the value of work done or supplies made by a contractor should not be credited
to his account until his bill has been passed and payment made thereon. Debit
entries in the ledger should be made only on the basis of transactions recorded
in the accounts, the postings being made from the supporting cash, stock or
adjustment vouchers; liabilities not yet liquidated should be excluded altogether.
The value of materials, if any, issued to a contractor under paragraph 10.3.4. or
10.3.5 should be debited to his account on the authority of his
acknowledgement (See paragraph 10.3.7).
Note.—Security deposits of contractors should not be included in their personal
accounts in the ledger—vide paragraph 15.1.1.
10.7.5. (a) The form of the ledger provides for the following columns:—
Particulars of bill or voucher:—
1. Date.
2. Voucher number.
3. Serial number, if a Running Account Bill.
Net transactions detailed by suspense head:—
4. Secured Advances
5. Other transactions/Advance Payments.
6. Name of work or account and particulars of transactions.
138 WORKS ACCOUNTS
Gross transactions:—
7. Debits.
8. Credits.
9. Total value of work or supplies.
10. Remarks.
(b) Columns 7 and 8 constitute the ledger account proper and columns 4 and
5 set forth the net effect of each posting on the two suspense heads making up the
account Column 9 is also not a part of the personal account but will be found useful for
the purpose of exercising a check over the continuity of bills in the case of running
accounts.
(c) Columns 1 to 3 and 10 require no explanation. Instructions for filling in
columns 4 to 9 in the case of personal accounts are given below:—
(i) Column 6— “Name of work, etc”.—Here should be entered the full
name of the work to which the bill or voucher relates. In the case of suppliers’ bills it
should further be stated whether the supply is for stock or specific work. Brief
particulars describing the nature of the transactions should then be added, and against
the line should then be posted in the money columns 4, 5, 7, 8, and 9 the figures
relating to that transaction only. When a deduction made from a contractor’s bill for
one work is creditable to the account of another work, and such credit is in connection
with his contract for the latter work, two distinct sets of entries should be made in the
ledger, one for the payment made on account of the former work and the other for the
recovery creditable to the latter, as if that recovery had been made in cash. The
second set of entries should be posted in a separate line, in columns 5 and 8 against
the name of the work concerned.
Note.—If there are several contracts in connection with a work or account, the
transactions relating to each should be distinguished, preferably by quoting
the number and date of agreement or work order.
(ii) Column 4.— “Secured Advances”—The net amount of the secured

advance since previous bill should be posted in this column.
WORKS ACCOUNTS 139
(iii) Column 5.—“Other transactions/Advance Payments”— In the case of

Running Account Bills, figure G of the memorandum of payments should be posted in
the column. If a payment is made on a first and final bill form no entry should be made
in this column unless a recovery is made from the contractor on any account. In the
case of transactions other than these, the amount paid or recovered should be entered.
(iv) In columns 4 and 5 debits to contractors should be posted as plus entries
and credits as minus entries.
(v) Column 7.— “Gross transactions—Debits”— If it is a Running Account
bill, figure H of the memorandum of payments should be posted in this column, otherwise
the total amount paid or chargeable.
(vi) Column 8.— “Gross transactions—Credits”—Here should be entered
the value of work or supplies creditable to the contractor, which will be figure F of
Account I in the case of Running Account Bill.
(vii) Column 9.— “Total value of work or supplies”—In the case of Running
Account Bills here should be entered the total value of work done or supplies made
up-to-date, as per figure A of Account I of Bill, but before posting the bill it should be
seen that the figure shown in Account I of it as “Deduct value of work shown on
previous bill” agrees with the last entry in Column 9 of the ledger against the work
concerned. In token of this check this last entry in Column 9 should be initialed (and
dated) by the Divisional Accountant.
III. BALANCING AND RECONCILIATION
10.7.6. The ledger accounts should be closed and balanced monthly. The
closing balance of each personal account should be detailed so as to show, in
respect of each separate work or supply (stock or work), the amount outstanding, if
any, under each of the two suspense accounts, (1) Secured Advance and (2) Other
transactions/Advance Payments, with a quotation, in each case, of the last Running
Account Bill and of all the vouchers supporting unadjusted outstandings under
“Other transactions/Advance payments” not incorporated in the last Running
Account Bill. In the case of Running Account Bills, these balances can easily be
ascertained from the memorandum of payments as indicated in the table below and
it will be found convenient in practice to make a note of the outstanding balances of
each bill, in the ledger when posting the bill, so that at the end of the month the
closing balance of the ledger account may be verified with the net result of the
details already recorded :—
140 WORKS ACCOUNTS
Serial number of entry in memorandum

of payments on bill form
Class of balance Running Account Running Account
Bill Bill
A B
(1) Secured Advances .. 3* ..
(2) Other transactions .. 5† 2†
Note.— See note to paragraph 10.7.5 (c) (i).

10.7.7. The Divisional Accountant should be held responsible for the
correctness of the Contractor’s Ledger and for securing agreement month by
month between the balances detailed in the Works Abstracts and the
corresponding balance of the accounts in the Ledger. He should further see that
there is no indication of a transaction pertaining to a running account having
been settled on a form of bill not permitted to be used for the purpose.
10.7.8. (a) Periodically all the personal accounts in the ledger should be
examined to see (1) that balances do not remain outstanding for a long time
without justification and (2) that, in the case of running accounts, bills are
prepared at reasonable intervals.
(b) Entries in column 9, “Total value of work or supplies” not
bearing the initials of the Divisional Accountant recorded under paragraph
10.7.5., should be reviewed in particular to ascertain the cause of delay, if any, in
the preparation of final bills. This examination must invariably be made before a
volume of the ledger is laid aside on completion so as to ensure that all
outstanding accounts in it are carried forward to a new volume.
(c) As soon as the monthly accounts are sent to the Accountant
General, the Divisional Officer should prepare the extract from the Contractor’s
ledger in K.P.W. Form 78 and forwarded to the Superintending Engineer every
month. The Divisional Accountant will be responsible for the prompt submission
of the extract from the Contractor’s ledger to the Superintending Engineer for
scrutiny by the Financial Assistant. It is the duty of the Superintending
Engineer assisted by his Financial Assistant, among other things, to exercise
proper check to see that the provisions in Note under paragraph 10.3.7.and
paragraph 10.3.8.are strictly adhered to.
*Total up-to-date secured advances on the security of materials.
† Deduction of amount withheld.
WORKS ACCOUNTS 141
IV. SCRUTINY OF ACCOUNTS BY CONTRACTORS
10.7.9. A contractor requiring a copy of his running account bill or an

extract from his account in the Contractor’s ledger should be furnished with the
same. He should be encouraged to look at his account in the ledger and sign
it in token of his acceptance of it.
10.8. SUNDRY RULINGS
I. CARRIAGE AND INCIDENTAL CHARGES
10.8.1. (a) The cost of carriage of stock materials to site of work, and of
all carriage charges in connection with the movement, from place to place, of
other materials issued to of provided specially for a work, should be debited
direct to the account of the work, the exact classification of charge being as
indicated below:—
Head chargeable in
Nature of issues of materials
the account of the work
.I .Issues to contractors under paragraph “Final charges” in the case of
10.3.4 : Minor Estimates and “Additional
charges for materials issued to
(a) To the promised place of Contractors/Direct to works” in the
delivery case of Major Estimates.
(b) Beyond the place of delivery, if
The personal account of the
incurred
contractor under the suspense
head “Contractors—Other
Transactions/Advance payments”
II. Issues to contractors under paragraph do

10.3.5.
III. Issues direct to work The sub-head to which the cost of
the materials is debited.
142 WORKS ACCOUNTS
(b) When surplus materials are returned from a work to stock, the cost of
carriage should be borne by the work, but if they are transferred to another work, the
charge may be debited to either work as may be equitable.
(c) Incidental charges connected with the movement of materials issued to
or provided specially for a work or returned there from, should be adjusted in the same
way as the cost of carriage.
(d) In all cases the places from and to which materials are conveyed, the
distance, the quantity and the approximate weight must be clearly stated in the pay-
ment vouchers.
II. CHARGES FOR EXAMINATION OF SOIL
10.8.2. The expense attendant upon the necessary examination of the soil
for the foundations of works ordered by competent authority should be treated
as outlay on works and not as a contingent charge, provision for it being made
under the service head concerned in a requisition or estimate according to the
amounts involved.
III. EXPENDITURE ON INAUGURATION CEREMONIES
10.8.3. The expenditure incurred with the sanction of competent authority

on ceremonies connected with the inauguration of important public works should
be debited:—
(a) in the case of Irrigation Projects (Commercial) to the Revenue Account
of the Project ;
(b) in the case of other works to the contingencies of the sanctioned estimate.
IV. MUNICIPAL AND LOCAL RATES AND TAXES ON BUILDINGS
10.8.4. Municipal and local rates and taxes on Public buildings residential
or non-residential, when chargeable to the Public Works Department, as the
department in administrative control of the buildings should be treated as
expenditure on repairs and debited to the maintenance estimates of the building
concerned.
WORKS ACCOUNTS 143
V. EXECUTION OF WORKS BY OTHER DEPARTMENTS
10.8.5. Whenever the maintenance of any works under the administrative

control of the Public Works Department is entrusted to the agency of another
Civil Department with the sanction of Government, the rules of procedure
applicable to be laid down by the Government in consultation with the
Accountant General subject to the following reservations:—
(1) The Civil Department should be responsible to the Public Works Depart-
ment to account for appropriation placed at its disposal.
(2) The Public Works Department should retain budgetary and financial
control.
(3) The Public Works Department should retain technical control through
inspection.
VI. EXECUTION OF GOVERNMENT WORKS BY LOCAL BODIES
10.8.6. When the Public Works Department entrusts to the agency of a

district board, or other local body, the maintenance of Government buildings, or
roads, without transferring the property to the local body, the payment made to it
on this account should be treated as a payment for work done by a contractor. If
lump sum payments have been agreed upon, the procedure for setting the account
periodically and for recording the cost of the works may be simplified, with the
concurrence of the Accountant General provided:—
(a) that a certificate that the work has been done in accordance with condi-
tions agreed upon is placed on record by the Divisional Officer or a Sub-divisional
Officer deputed by him for the purpose ;
(b) that if the payment is made for a number of works, expenditure on all of
which cannot be classified in the accounts under a single head of account, the neces-
sary detailed classification of the charge is set forth, and
(c) that, as far as possible, the liability of a year is settled within that year.
144 WORKS ACCOUNTS
Note.—These payments should not be charged to the minor head “Grants-in-aid”,

that head being intended for cash contribution made to local bodies in con-
nection with(1)reads which are either not the property of Government, or
being such property, have been transferred to the control of a local body, (2)
Miscellaneous civil works, the cost of which if constructed by the Public
Works Department would be chargeable to the minor head “Original Works—
Buildings—Civil Works”, and (3) for the financial assistance given to these
bodies in the form of expenditure incurred in the Public Works Department on
a work constructed by that Department on their behalf.
VII. GOVERNMENT WORKS PARTLY CONTRIBUTED FOR

BY LOCAL BODIES AND PRIVATE PARTIES
10.8.7. (a) Annual contributions recovered from local bodies or private

parties which have been fixed as a specific sum without reference to the amount
actually spent by Government on certain works, should be credited finally in the
accounts to the appropriate heads of revenue—vide statement E of Appendix 3.
The actual expenditure on the works should be charged in the public works
accounts in the same manner as on other Government works.
Note.—The Accountant General will maintain a list of contributions recoverable

annually and will watch the recoveries in audit.
(b) In the case of contributions which are not fixed once for all as a specific
sum but which are fixed on each occasion either with reference to the total cost of the
work or on other considerations the contributions so fixed together with the centage
charges fixed by Government from time to time should be credited to “Public Works
Deposits” and the outlay incurred should be charged against it in the first instance.
After the deposit has been exhausted, any further outlay should be charged to
Government under the relevant heads of account and any readjustment which may
become necessary on the basis of the agreed share of cost should be carried out just
before the accounts of the works are closed.
WORKS ACCOUNTS 145
VIII. SCOPE OF SANCTION
10.8.8. The authority granted by a sanction to an estimate is strictly

limited by the precise objects for which the estimate was intended to provide.
Accordingly it is not permissible to apply, without the sanction of the competent
authority, any anticipated or actual savings whether due to the abandonment of
a part of work or to any other cause, on a sanctioned estimate of a definite
project, to carry out additional work not contemplated in the original project or
fairly contingent on its actual execution.
146 LUMP SUM CONTRACTS
CHAPTER–11
LUMP SUM CONTRACTS
11.1. GENERAL
11.1.1. In a lump sum contract the Contractor agrees to execute a

complete work with all its contingencies in accordance with the drawings and
specification for a fixed sum.
11.1.2. The essential characteristics of this kind of contracts are:—
(i) A Price Adjustment Schedule is specified in order to regulate the amount
to be added to or deducted from the fixed sum on account of additions and alterna-
tions not covered by the contract.
(ii) Except as provided in clause (i) no allusion is made in the contract to the
departmental estimate of the work, schedule of rates or quantities of work to be done.
(iii) The detailed measurements of the work done are not required to be re-
corded except in respect of additions and alternations.
11.2. EXECUTION OF WORKS THROUGH

LUMP SUM CONTRACTS
11.2.1. Execution of works on lump sum basis will be resorted to only in

exceptional cases of absolute necessity and in cases where there is scope and
advantage for the use of alternate designs submitted by tenderers consistent with
technical requirements and total cost.
11.2.2. No single tender shall include more than one work but contractors
who wish to tender for more works will submit separate tenders for each work in
separate single entities of work and not groups of works of heterogeneous
designs and specifications.
11.2.3. No work should be executed through lump sum basis unless
sanction is obtained from Government in each case.
11.2.4. When proposals are sent to Government for obtaining sanction to
award a work on lump sum basis a report should be submitted with a clear
technical examination of the advantages compared with departmental designs.
The department should also prepare its own estimates on the basis of the
designs and materials and work out the cost for each work according to the
LUMP SUM CONTRACTS 147
departmental data so as to enable Government to make a comparison with the
Contractor’s lump sum quoted rates.
11.2.5. The other general conditions pertaining to contract as envisaged
in the Kerala Financial Code, Volume I will also be observed.
11.2.6. The departmental personnel should supervise the work to ensure
that the items of work like foundation and piling work for bridges etc, are done
either according to specifications or with approved deviations requiring detailed
measurements.
11.2.7. The Government should get the benefit of any savings in the
quantities of materials actually used up as against the quantities specified in the
schedule of quantities.
11.3. FORM OF CONTRACT
11.3.1. The form of contract will be settled by Government in consultation

with the Chief Engineer, General and Buildings and Roads and Law Department.
The advice of the Accountant General will also be sought on the question
whether the form proposed meets the requirements of audit.
11.4. PAYMENTS FOR WORK DONE
11.4.1. Payments to contractors for work done are made subject to the
terms of the contract and any subsidiary instructions issued by the Government in
this behalf and on the certificates of the officers in charge of the work as detailed
in paragraphs 11.4.2. and 11.4.3. below.
11.4.2. Whenever it is proposed to make any intermediate payment, a
certificate should be given by a responsible officer of Government (not below the
rank of a sub-divisional officer) to the effect that by superficial or general
measurement or by some other suitable method laid down by competent authority
(which should be specified), he has satisfied himself that the value of the work
done is not less than a specified amount in conformity with contract agreement
and that with the exception of authorised additions and alternations, it has been
done according to the prescribed drawings and specification.
11.4.3. In the case of final payments, in addition to a record of detailed
measurements in respect of additions and alternations, there should be a
certificate of completion of work according to the prescribed drawings and
148 LUMP SUM CONTRACTS
specification signed by the Divisional Officer or such other officer authorised by

Government.
11.4.4. In order that a proper financial control may be exercised over the
payments made, it is necessary that the accounts of additions and alternations
should be kept quite distinct from those of the rest of the work. There is no
objection to payment for additions and alternations being made before the
completion of the work, if the detailed measurements of them have been made.
11.5. FORM OF BILLS
11.5.1. The Form of bills used for payments in connection with lump sum
contracts are K.P.W. Forms 23 B and 22A.
(1) Running Account Bill.—Form 23B is intended for intermediate
payments to the contractors. A reference should be given in the bill to the number and
page of the measurement book in which the measurements of additions and alternations,
if any, are recorded; no other details of work done need be reproduced in the bill.
(2) Final Bill.—Form 22A is intended for final payments made to
contractors. The details of the additions and alternations alone should be given in the
bill. The certificate referred to in paragraph 11.4.3 alone will be sufficient for the
remaining items of work. The contractor should be required to add to his
acknowledgement in his own handwriting a statement that he has received the payment
in full settlement of all demands—See however Note I below paragraph 10.2.30 (b).
Note.—The form should be printed on yellow paper to distinguish it from the
Running Account Bill—Form 23B.
11.6. SUBSIDIARY WORKS ACCOUNTS
11.6.1. The instructions for the maintenance of work abstracts and

registers of work in respect of the ordinary form of contracts apply mutatis
mutandis to the accounts of the lump sum contracts also.
11.6.2. All intermediate payments made to the contractor and
acknowledged by him are treated as advances made to him on account of the
work concerned and accounted for under a suspense head, ‘Contractors—
Advance Payments’ in the accounts of the work. This will facilitate a watch
over the prompt adjustment of the payments made.
Note.—If a per cent or any other portion of the value of work done is withheld as
LUMP SUM CONTRACTS 149
security for the due fulfillment of the terms of the contract, the net amount
remaining after deduction of the portion withheld should be entered as the
advance payment.
11.6.3. Other recoverable payments including the value of materials

supplied to the contractor or to others on his behalf (such as charges for supply
of water or electricity) should be entered in the accounts under the suspense head
“Contractors—Other Transactions”.
11.6.4. From the final bill paid to the contractor the total advances made
to him in the running account bills or other recoverable payments will be
deducted by short payment from the total value of work done and the recoveries
so made will be shown as minus figures under the suspense heads concerned in
which the plus figures will already be outstanding.
11.7. CONTRACTOR’S LEDGER
11.7.1. Accounts of the transactions on lump sum contracts should be main-

tained in Form 41 subject to the following subsidiary instructions.
11.7.2. As all ‘intermediate payments’ made are treated as advances, no
figure there from will be posted in column 8 which is intended to show the
amount creditable to contractor’s account on the basis of the value of work done.
The first and the last entry which will appear in this column will be the figure
‘F’ in Part I of the final bill. Column 9 need not be posted at all.
Figures for posting the other columns 5 and 7 are indicated in bills by the
same distinguishing letters G and H respectively, which have been used to denote
the corresponding entries in the ordinary bill.
150 MANUFACTURE ACCOUNT
CHAPTER–12
MANUFACTURE ACCOUNT
12.1. INTRODUCTORY
12.1.1. When materials are manufactured departmentally, either for the general
requirements of works i.e., for stock of for a particular work a separate account,
called a manufacture Account must be kept of the transactions connected with each
manufacture. See, also paragraph 14.1.2.
Note.—1. The manufacture of materials involving an outlay of ` 10, 000 or upwards
must in all cases be covered by an estimate.
Note.—2 Separate manufacture account should be kept in respect of each charge
of a set of brick or lime kilns and their accounts should not be dealt with
as one, because they happen to be manufacturing the same class of articles.
These operations should not therefore be covered by the same estimate if
estimates are required to be prepared under Note 1 above.
12.1.2. The detailed accounts of the expenditure on a manufacture are
maintained in the same way as the accounts of a work and, in addition, an account
is kept of the quantities and values of the products of the manufacture. The two
sections of the accounts are known respectively, as the “Operation” and the “Out-
turn” accounts.
12.1.3. The ordinary forms of the registers of works are unsuitable for
recording the progress of the transactions of a manufacture. K.P. W. Form 40,
Register of Manufacture, should be used instead.
12.1.4. It is essential that the accounts of a manufacture shall not remain
open indefinitely. If the operations are seasonal, the accounts of each season should
be kept separate and closed as soon as the operations are closed. In cases in which
operations are continuous, the account must nevertheless be closed periodically, at
least once a year.
12.2. OPERATION CHARGES
12.2.1. A manufacture Account is charged directly with (1) the value of raw
materials issued from stock or obtained otherwise, (2) the cost of the labour
employed and (3) other incidental charges connected with the operations.
MANUFACTURE ACCOUNT 151
12.2.2. The following rules apply to certain special incidental charges :—

(a) Capital charges, such as the cost of land, kilns, special plant, etc., in-
curred in connection with a manufacture which does not extend beyond a single
season, are debited wholly to the account of the manufacture.
(b) Capital charges in connection with a manufacture extending over more
than one season should be debited, in the first instance to a special account under the
sub-head “Land, kilns, etc.” of the Stock Account. This account should also be
charged with the cost of repairs and renewals of the kilns etc. All these charges
should be recovered in suitable instalments by debit to the “Operation” accounts of
the several season, the number of instalments and the amount chargeable for each
season being determined on the merits of each case under the orders of competent
authority.
Note.—(1) The decision as to the suitable instalments where by the “Land, kilns, etc.,”
account is to be cleared periodically as given by the authority sanctioning
the initial charge, should be recorded in the Priced Stores Ledger, K.P.W.
Form 11 and not deviated from without the further orders of that authority.
Note.—(2) When the land, kilns, plant, etc., acquired for departmental manufacture
operations are leased to a contractor of the division or other person, the rent
charged should be credited to this special account and not to revenue.
(c) If the manufacture is undertaken on behalf of other divisions or depart-
ments, or of local bodies or individuals, a charge should be made on account of estab-
lishment and tools and plant, if leviable under the rules (vide Appendix 2 to the Kerala
Account Code, Volume III reproduced as Appendix 9 to this code) for outlay on works
undertaken on their behalf.
(d) Save as provided in clause (c) above, no charge is permissible on ac-
count of the general establishment and ordinary tools and plant charges, or on ac-
count of interest on the capital cost of the land, kilns, plant, etc., though all these
charges should be included in any Pro forma accounts of the manufacture opera-
tions of the division, which may be prepared under the orders of the Government,
with a view to compare the cost of articles manufactured departmentally with the
rates charged by suppliers.
12.2.3. The accounts of road metal digging are not treated as manufacture
accounts, but the charges connected with land and quarries acquired for such opera-
tions should be dealt with in accordance with paragraph 7.4.5.
152 MANUFACTURE ACCOUNT
12.3. VALUE OF OUT-TURN

12.3.1. A Manufacture Account is credited with the value of the manufactured
articles and of the surplus materials sold or otherwise disposed of (paragraph
10.3.14).
12.3.2. The out-turn account referred to in paragraph 12.1.2 should show,
month by month, the quantities and value of each class of articles manufactured,
compared with the corresponding figures shown in the estimate (if any). The
detailed account for each month should be prepared in K.P.W. Form 36, Out-turn
Statement of Manufacture, and should be attached to the Works Abstract for the
operation.
12.3.3. The rates for valuing manufactured articles should be so fixed as to
represent, as accurately as possible the actual cost of manufacture per unit, but
should not exceed the market rates.
12.4. GENERAL ACCOUNT
12.4.1. A Manufacture Account is essentially a suspense account, as the

cost of the operations cannot be cleared finally until they are closed. Manufacture
transactions are, therefore, recorded under a distinct sub-head, called
“Manufacture” of the stock suspense account.
12.4.2. In the Stock Accounts, the manufacture transactions should be
recorded thus:—
(a) “Operation” charges should be shown as receipts of stock under the sub-
head “Manufacture,” charges representing value of stock materials issued to
manufacture being simultaneously treated as issues of stock under the sub-
heads concerned.
(b) All out-turn should first be brought formally on the stock account by
crediting its value to “Manufacture” and simultaneously showing the articles as
receipts of stock under the sub-heads concerned.
Note.—(1) If the rate, at which any article of out-turn, manufactured for a particular
work, is valued, is different from the issue rate of a similar article already in
stock, the two articles should appear as distinct items in the Stock
Accounts.
Note.—(2) No supervision charge is leviable in respect of materials manufactured on
behalf of other divisions, departments, Governments, local bodies and
individuals, which are formally passed through the Stock Accounts under
this paragraph—Vide paragraph 12.2.2. (c)
MANUFACTURE ACCOUNT 153
12.4.3. The difference between the “Operation” and “Out-turn” should be

adjusted under the orders of competent authority before the accounts of a
manufacture are closed. If the orders issued have the effect of enhancing or lowering
the value of the out-turn already brought to account, the adjustment will be made
by a suitable entry (without any fresh quantities) in the Out-turn Statement K.P.W.
Form 36; in other cases, the loss or gain, as the case may be, should be taken to the
expenditure or revenue head concerned by a regular transfer entry which will affect
the “Operation” account only. In all cases, the total “Operation” and “Out-turn”
should equal each other on closing the Manufacture Account. See also paragraph
7.2.25.
154 SUSPENSE ACCOUNTS
CHAPTER –13
SUSPENSE ACCOUNTS
13.1. INTRODUCTORY
13.1.1 The account of the minor head “suspense” sub-divided into

as many of the four heads named below as may be required, is kept in each division
under a single major head of expenditure unless Government has directed
otherwise:—
(1) Purchases, (2) Stock, (3) Miscellaneous Public Works Advances, and
(4) Workshop Suspense. These heads are of a temporary character and all transactions
recorded under them are ultimately removed either by payment, or recovery, in
cash, or by adjustment. The transactions, therefore, consist of both debits and
credits, the latter being treated as reduction of expenditure when making up the account
of the major head.
Note.—(1) The general suspense head “Purchase” is not operated upon from
1-4-1961 in this State except for the clearance of the outstanding items
under that head as on 31-3-1961. An abstract account showing the opening
balance, debits and the closing balance should be furnished along with
monthly accounts, until all the outstanding items are cleared. Along with
the monthly accounts for September and March a list of outstanding items
should be attached to the abstract account.
Note.—(2) From 1-4-1971 onwards all purchases whether for work or stock should
be routed through the head “Purchases” to be opened as a sub-head in
the works abstract for work/stock as the case may be—Vide paragraph
10.5.15.and Note 1 under paragraph 7.2.25.
13.2. STOCK
13.2.1. The head “Stock” is opened in all divisions in which stocks of

materials are maintained for general purposes—Vide paragraph 302 of the
Kerala Public Works Department Code. In divisions in which no stocks are
maintained, this account should be opened only when any manufacture operations
are undertaken.
13.2.2. The money limit for the stock reserve of a division prescribed in
paragraph 302 of the Kerala Public Works Department Code is meant to be applied
to the value of materials acquired or manufactured for stock purposes only. Excesses
SUSPENSE ACCOUNTS 155
over this limit are, therefore permissible only when caused by unadjusted expenditure
on manufacture operations connected with specific sanctioned works.
13.2.3. The account head “Stock” is debited with all expenditure connected
with acquisition of stock materials and with all manufacture operations.
It is credited with the value of materials issued to works, or sold, transferred or
otherwise disposed of and purchases and the balance of the account will represent
the book value of the materials in stock plus the unadjusted charges, etc., connected
with manufacture minus the value of materials not paid for. In other words the
balance in the stock account will give the actual debit to “Stock” less undischarged
liabilities represented by the credits under the sub-head “Purchases”—Vide
paragraph 13.2.4. below.
Note.—The balance in account will also include the difference between the value at
the issue rate and at the rate at which stores are issued under paragraph 7.2.21
and this will be cleared during the annual adjustment referred to in paragraph
7.2.33.
13.2.4. The sub-heads of the stock account are: 1. Small Stores, 2.
Buildings Materials, 3. Timber, 4. Metals, 5. Fuel, 6. Painters Stores, 7.
House Fittings, 8. Miscellaneous Stores, 9. Land, Kilns, etc., 10. Manufacture
11. Purchases, *12. Advance Payment and **13. Carriage and Storage.
13.2.5. (a) The general account of the receipts, issues and balances of
the suspense head “Stock” should be maintained in the Suspense Register
K.P.W. Form 62. A separate account should be kept in respect of each sub-
head, the transactions of the several sub-divisions being detailed therein as separate
items and the totals of all sub-divisions as another. Transfers within the
division should be accounted for against a single item “Deduct-Transfers within
Division”, before the total for the entire head “Stock” is struck.
Note.—The clearance of balances under “Transfers within Division” should receive
special attention.
(b) The subsidiary accounts of stock are described in Chapters 7 and 12.
(c) The detailed procedure for the operations of the sub head ‘Purchase’ is
as follows:—
*Addition G.O. (P) 522/80/Fin. dated 22-8-1980.

**Addition G. O. (P) 693/85/Fin. dated 2-11-1985.
(i) All purchases for stock should be routed through this sub-head.
Immediately on receipt of materials, the value, if known, should be debited to the
appropriate final sub-head by per contra credit to the sub-head “Purchases”. If the
actual value is not known, an estimated figure should be adopted.
When payment/adjustment is made the amount to the extent of the credit
under the sub-head “Purchases” should be debited to that head and the difference,
if any, charged to the appropriate final sub-heads.
A detailed collective record of outstanding liabilities under this suspense
account should be maintained in the Division in a “Register of outstanding liabilities”
(K.P.W. Form 54, suitably modified).
(ii) Unclaimed balances under the sub-head should be credited to Government
as lapsed under the receipt head of account corresponding to the expenditure major
head under which it is operated. In the accounts to March every year the following
classes of items should be lapsed to Government.
(1) Original credits not exceeding `5 outstanding for
one whole account year.
(2) Balances not exceeding ` 5 of partly cleared items relating to the year
then closing.
(3) Balances unclaimed for more than 3 complete account years.
The repayments of lapsed items should be dealt with in accordance with the
rules for repayments of lapsed P.W. Deposits—vide paragraph 15.4.2.
*(d) The balance under the Sub-head “Carriage and Storage at the end of
each year should be finally adjusted—vide para 7.2.23† —on closing the accounts of
that year as a “Surplus” or “deficit” i.e., as profit or loss on stock according as it is a
minus or plus balance and should not be carried forwarded to the following year.
† (e) All payments made in advance for stores ordered will be debited to the
Sub-head “Advance Payments” under the suspense head “Stock” when the materials
are subsequently received the value is debited to the concerned sub-head of stock by
minus debit to ‘Purchase’. Finally when the bill is received and the transaction is
settled, the debit under “Advance Payment” will be cleared by a debit to “Purchase”
and minus debit to ‘Advance Payment’ for the total amount. The balance under this
head at the end of the year should be carried over to the following year.
A detailed collective record of advance payment should be maintained in the
Division in the form “appended”.
*Insertion G.O. (P) 522/80/Fin. dated 22-8-1980.
†Substitution G. O. (P) 693/85/Fin. dated 2-11-1985.
13.3. MISCELLANEOUS PUBLIC WORKS ADVANCES
13.3.1. Transactions recorded under the head “Miscellaneous Public Works

Advances” are divided into four classes:—
1. Sales on credit.
2. Expenditure incurred on Deposit works in excess of deposits received.
3. Losses, retrenchments, errors, etc.
4. Other items.
Note.—(1) Personal advances drawn from the treasury, and audit retrenchments made
from bills cashed direct at the treasury, do not appear in the accounts of
Divisional Offices. Advances made to contractors appear in the accounts of
works.
Note.—(2) The initial debits of advances/advance payments for supplies (in respect of
work or stock) permitted on production of Railway Receipts are not ac-
counted for under this head from 1-4-1961. Instead they are debited to the
heads “Contractors—other transactions/Advance Payments” under work
or stock.
13.3.2. When stores of any kind are sold on credit, their value (plus, if recoverable,
the supervision charges referred to in paragraph 306 of the Kerala Public works
Department Code) should be debited to “Miscellaneous Public Works Advances” under
the sub-head “Sales on credit”, so that (1) the accounts of stock or works from which
the materials are issued may be kept correct, and (2) the recovery of the value from the
local body or individual concerned may be watched through the regular accounts.
Note.—In each case there must be authority for the sale on credit.
13.3.3. Outlay on Deposit Works is required to be limited to the amounts of
deposits received. Any expenditure on Deposit Works incurred in excess of the amount
deposited (vide Note under paragraph 16.1.2. of this code) is chargeable to
“Miscellaneous Public Works Advances” pending recovery to effect which action should
at once be taken. See paragraph 13.3.8.
13.3.4. Under the heading “Losses, Retrenchments, Errors, etc”, appear the
following:—
(a) Deficiencies in cash or stock,
(b) Actual losses of cash or stock,
(c) Errors in accounts awaiting adjustment,

(d) Retrenchments and losses of other kinds recoverable from Government
Officers.
13.3.5. The head “Other items”, is meant for all debits, the allocation of which
is not known or which cannot be adjusted until recovery or settlement is effected
or write off ordered the following are cited as examples:- (1) Debits, the classification
of which cannot at once be determined, (2) recoverable debits not pertaining to
the accounts of a work and (3) recoverable outstanding pertaining to works, the
accounts of which are closed (vide Note 1 to paragraph 10.5.21 and paragraph
10.6.8).
13.3.6. No charges may be debited to “Miscellaneous Public Works
Advances” on the ground of absence or insufficiency of sanction or appropriation,
except as provided in paragraph 13.3.3.
Note.—The share of Municipal tax paid by Government on behalf of tenants of Gov-
ernment buildings should be debited to this head pending recovery.
13.3.7. Items in the “Miscellaneous Public Works Advances” account are
cleared either by actual recovery or by transfer, under proper sanction or authority
to some other head of account. Items or balances which may become irrecoverable
should not be so transferred until ordered to be written off.
13.3.8. The detailed accounts of this head should be kept in K.P.W.
Form 62—Suspense Register. For items falling under the class “Expenditure
incurred on deposit works in excess of deposits received” details are not necessary,
as these are recorded in the Schedule of deposit works, K.P.W. Form 61. For
each of the other three classes of items, a separate set of folios should be reserved,
and all the items under each class should be detailed so that their clearance may be
watched individually. An abstract should be prepared to show the totals of all the
classes.
13.4. WORKSHOP SUSPENSE
13.4.1. When a workshop has been established, the accounts of which are
kept in accordance with the rules in Chapter 14 all direct outlay on the jobs executed
and on other operations of the workshop is passed through the suspense head
“Workshop Suspense”, and a separate account is kept under it of each job or
operation, so that all charges relating to each may be collected and charges of a
general nature may be suitably distributed over all the jobs or operations effected,
before the total cost recoverable is determined.
13.4.2. The recorded expenditure on a job is removed from the suspense

account only when, and to the extent, an adjustment is effected against the deposit
received or against the service or other head concerned—vide paragraph 14.2.4.
This removal is effected by a credit to the account of the job. But when any charges
are transferred from one job or operation to another, the transfer should be made
by plus and minus debit entries.
13.4.3. On the completion of a job, all outstanding charges on it must be
debited as soon as possible to the head concerned, but in cases where this cannot
be done, as in the case of expenditure incurred in excess of the deposit received,
the unadjusted amount should be transferred to the head “Miscellaneous Public
Works Advances” pending settlement.
13.4.4. The detailed account of the transactions under the head should be
kept in a suitable form prescribed in accordance with the rule in paragraph 14.1.3.
the object being to maintain an account showing the cost of each job or operation
and its adjustment from time to time.
160 WORKSHOP ACCOUNTS
CHAPTER –14
WORKSHOP ACCOUNTS
14.1. INTRODUCTORY
14.1.1. The accounts to be kept in a workshop depend on the extent of the

operations and the size of the shop.
14.1.2. When there is a small shop for the execution of repairs to tools and
plant or of small manufacture jobs, the accounts of works executed in such shops
should be kept in the forms prescribed for repair works or manufacture operations,
as the case may be.
14.1.3. Larger workshops, with special plant or machinery, also exist which
are treated as separate sub-divisions, or divisions, for account purposes. When such
workshops are of the character of quasi-commercial undertakings, the system of
accounts will be that prescribed locally for similar undertakings. When they are run
mainly for departmental purposes, the accounts should be kept in accordance with
the general rules and principles laid down in this Chapter. In either case, the exact
forms to be used and the procedure to be observed will be settled in respect of each
workshop in consultation with the Accountant General.
Note.— The P.W.D. Engineering Workshop is intended for all Government Depart-
ments.
14.1.4. For every job there must be an estimate of cost (providing for all
charges, including the prescribed percentages for indirect charges—vide paragraph
14.2.5) sanctioned by competent authority and accepted by the intending officer,
local body or individual. The amount to be realised from the indenting party will,
however, be based on the actual cost, though the authorised limit of cost, which the
officer in charge of the workshop may incur without further authority is that shown
in the accepted estimate.
Note.—If the execution of a job for another division or department is likely to extend
beyond one financial year, the limit of the cost which may be incurred in each
official year should also be settled before hand.
WORKSHOP ACCOUNTS 161
14.2. DIRECT AND INDIRECT CHARGES
14.2.1. Receipt and expenditure transactions in connection with workshops are

brought to account as follows:—
(a) Where capital accounts are kept of a workshop intended mainly for
the needs of the Irrigation Branch (i.e., if the workshop is to be regarded as being on
a quasi-commercial basis), the capital expenditure should be recorded under the relevant
division and sub-division of the major head “99”. Receipts representing recoveries of
capital expenditure will be taken in reduction of such expenditure while revenue receipts
and working expenses will be booked under the minor heads opened under the
corresponding division and sub-division of the major head, ‘‘XXXIV’’ and “43”
respectively entitled“Receipts from workshops”, divided so as to meet the requirements
of the Pro forma accounts of the shop (vide paragraph 14.3.1)
(b) Where capital accounts are kept of a workshop intended mainly for
the needs of the Civil Works Branch, all expenditure incurred upon it, whether of the
nature of capital or of working expenses, should be recorded under the major head
“50”. Recoveries of capital expenditure will be taken in reduction of such expenditure
and revenue receipts will be booked under the minor head, opened under the major
head “XXXVII”, entitled “Receipts from Workshops”, divided so as to meet the
requirements of the Pro forma accounts of the shop.
(c) Where no capital accounts are kept of a workshop, for whichever
branch intended, all expenditure should be booked under the major head, “44” or
“50”, as the case may be, and all receipts, whether “Recoveries of expenditure” or
“Revenue receipts”, under the minor head “Miscellaneous” of the corresponding
revenue head “XXXV” or “XXXVII”.
Note.—The procedure indicated in clause (c) above is followed in this State, the
expenditure and receipts being booked under “50—Public Works” and
“XXXVII-Public Works” respectively.
14.2.2. All capital charges on buildings, plant and machinery and stock
materials, and all charges incurred on their maintenance and on the upkeep of the
necessary general establishment, should be accounted for as ordinary Public Works
transactions under the major head concerned, in accordance with the preceding
paragraph and under the general rules of other chapters of this Code. These are
charges which neither pertain to any individual job executed in the shops, nor are
capable of direct appointment amongst all the jobs, and are, therefore met out of
the grants of the Department, the distribution of such charges over individual jobs
being made in accordance with the rule in paragraph 14.2.5.
14.2.3. All other expenses connected with the operations of a workshop are
debitable to the jobs concerned, and should therefore, be accounted for under the
suspense head ‘Workshop Suspense’, (vide paragraphs 13.4.1. to 13.4.4.). The
charges pertaining exclusively to any job should be debited to it a once, and those
of a general nature should be treated, in the first instance as general charges (under
one or more suitable headings) and apportioned subsequently amongst the jobs
concerned in accordance with a definite procedure.
Note.—(i) This paragraph does not apply to incidental charges connected with the
stock of materials which should be dealt with under paragraph 14.2.2.
Note.—(ii) All liabilities should be taken into account, even though undisbursed, so
that the general charges may be correctly allocated month by month, and
the recorded expenditure on each job may represent, as far as possible,
the actual cost up-to-date.
14.2.4. In the case of jobs of all classes, the cost of operations should be
cleared or adjusted in transfer as the case may be, month by month but in the
following cases the accounts of a job may be settled once a year in March, or in an
earlier month if job is completed earlier (vide paragraph 13.4.3) :—
(a) When the total cost during the year is not larger than ` 100 or any other
limit that may be fixed in consultation with the Accountant General.
(b) When the monthly settlement of account is inconvenient to the in-
denting division or department.
When the estimated cost of job is recovered in advance, it should be kept in
deposit in the first instance, and the adjustments of actual cost made under this
paragraph should be effected against the deposit, the unexpended balance being
refunded only when the job is completed and the account of it settled.
14.2.5. In addition to the direct charges referred to in paragraph 14.2.3. the
account of each job should be debited, not through the Workshop Suspense Account
but directly under the head of account concerned, with suitable percentage to cover
the indirect charges enumerated below:
(a) Supervision charges.
(b) Maintenance charges of buildings, plant and machinery.
(c) Interest on the capital cost of buildings, plant and machinery.
(d) Depreciation of buildings, plant and machinery.
WORKSHOP ACCOUNTS 163
(e) Establishment charges (including 1 per cent on account of Audit and
Accounts establishment); See rule 6 of Appendix 2 to the Kerala Account Code
Volume III, reproduced in Appendix 9 of this Code. See also paragraph 14.2.2.
The percentage for supervision charges should be calculated on the value of
materials issued to each job. The other charges are ordinarily calculated on the
total cost of labour and stores pertaining to the job.
It is usual to charge a further percentage on account of profit except in the
case of jobs executed for other divisions of the State.
* It is not necessary to realise the indirect charges for mechanical works relating
to Public Works Department and Irrigation Department executed in the workshops
under the Mechanical Wing of Public Works and Irrigation Departments.
Note.—The percentage realised on account of establishment charges is treated as
reduction of expenditure, or, as revenue receipts, as the case may be, in ac-
cordance with the rules in Appendix 3. All other percentages are treated as
revenue receipts.
14.2.6. The indirect referred to in paragraph 14.2.5.should be brought to
account whenever the settlement of the account of direct charges is effected under
paragraph 14.2.4.
14.3. ANNUAL ACCOUNT AND REVIEW
14.3.1. Annually, Pro forma accounts of each workshop should be prepared,

consisting of—
(i) the Capital Account, showing the values (after making due allowance for
depreciation) of the buildings, machinery and plant and stock, and the outstanding
balance of the Workshop Suspense Account,
(ii) the Out-turn Account showing, in such detail as may be necessary, the
charges on labour and stores, and general and indirect charges, and
(iii) the Profit and Loss Account showing on the one side the actual working
liabilities of the year, e.g., (a) interest calculated on the mean capital of the year under
all the heads named in (i) above, (b) the actual maintenance charges of buildings and
machinery and plant, (c) depreciation of buildings, machinery and plant calculated on
the capital value thereof and (d) general establishment charges plus (1) a suitable
addition thereto on account of leave and pensionary charges and (2) 1 per cent for
audit and accounts establishment, only on such jobs in respect of which this percentage
*Addition. G.O.(P). No.1414/99/Fin Dated 24-05-1999.

is not credited to the major head “20 Audit” or “LII Miscellaneous—Fees for Government
Audit” in the regular accounts (vide rule 7 of Statement E of
Appendix 3); and on the other side the percentage charges made under paragraph
14.2.5 excluding the 1 per cent for audit and accounts establishment credited to “20
Audit” of “LII Miscellaneous-Fees for Government Audit”.
Note.—The stock account should be treated as a part of the workshop account, only
if, and to the extent, the reserve stock is declared by the State Government to
be part and parcel of the shops. When the whole or part of a stock is merely
an adjunct to a workshop, neither the interest charges on it nor the losses or
gains (including supervision charges) arising out of it, should appear in the
Profit and Loss Accounts of the workshop.
14.3.2. Subject to such direction as may be given by the Comptroller and
Auditor General in this behalf, the Accountant General will review the annual
accounts of a workshop, in consultation with the officer in charge of it, and submit
a report to the State Government on its financial working, specially bringing out
the necessity or otherwise of revising the percentages fixed by the local Government
for the several charges referred to in paragraph 14.2.5.above.
Note.—To facilitate the review of percentage it will be found convenient to show in
the Profit and Loss Account, not only the figures of the year but also the
progressive figures to the close of the year, commencing from a suitable date.
DEPOSITS 165
CHAPTER–15
DEPOSITS
15.1. INTRODUCTORY
15.1.1. Deposit transactions of the Public Works Department are of two

kinds:
(1) Public Works Deposits, which pass through the regular accounts of
the division.
(2) Interest-bearing securities.
Deposits of the first kind comprise transactions of the following classes,
which are passed through the account head ‘Public Works Deposits’ :—
(a) (See Note 2 below)
(b) Cash deposits of contractors as security.
(c) Deposits for works to be done.
(d) Sums due to contractors on closed accounts.
(e) Sums due to other Governments on closed accounts.
(f) Miscellaneous deposits.
The interest-bearing securities referred to in class II are deposited by
contractors. These do not pass through the regular accounts of the division.
Note.—(i) Sums of less than one rupee due for refund of revenues of payment of
deposits should be credited to revenue.
Note.—(ii) Instead of obtaining cash deposits from subordinate as security against
posts held by them the scheme of taking adequate Fidelity Insurance covers
in respect of posts to which the custody of handling of Government cash
or stores is assigned, has been proposed for introduction in the State. The
scheme envisages that Fidelity Insurance should be taken for the amount
fixed as security for a post and the premia therefore will be paid by debiting
the expenditure to the contingencies of the Department.
166 DEPOSITS
15.2. SECURITY DEPOSITS
15.2.1. Security deposits of contractors, whether made in cash or in one

of the forms of security referred to in paragraph 15.2.2. are covered by a bond
or agreement setting forth the conditions under which the security is held and
may be ultimately refunded or appropriated. Reference to such bond or
agreement should be recorded in the Deposit Register or the Register of
Securities, as the case may be.
15.2.2. The recognised forms of interest-bearing securities and the rules
to which they are subject are indicated below:—
(1) Government Savings Bank Deposits.
(2) (a) Government Promissory Notes.
(b) Jenmikaram Payment (Abolition) Bonds.
(3) Deposits in recognised banks and Co-operative Societies approved
by Government including deposits under the Bank Guarantee Scheme.
(4) Government of India securities (other than non-terminable securities).
(5) National Savings Certificates.
(6) Government of India 12-Year National Plan Savings Certificates.
(7) 10-year Treasury Savings Certificates.
*Note.— Security Deposits for works estimated to ` One lakh may be accepted in the
form of Bank Guarantee from contractors of Public Works Department and
Public Health Engineering Department. This facility will also be available to
the contractors registered in the Public Works Department who undertake
Civil Works in the Forest Department. In the case of other contracts invest-
ment in Treasury Savings Bank will alone be treated as acceptable form of
Security Deposits for works undertaken by the PWD/PHED/Forest Depart-
ment contractors. The system of Bank Guarantee will not apply to the reten-
tion amounts permitted to be kept under Treasury Savings Bank as per para
15.2.7 (b) of the Kerala Public Works Account Code.
This amendment shall be deemed to have come into force from 1-4-1979.
(a) When security is given in the form of Government Promissory Note,
it should be accepted at 5% below the market price or at its face value whichever is
less. The contractor who furnishes security in this form should endorse the securities
*Insertion G.O. (P) 104/80/Fin. dated 1-2-1980.
DEPOSITS 167
in favour of the Executive Engineer. The Officer receiving the deposit should see that
the endorsers have full title to the notes and convey it to the Executive Engineer in
accordance with the rules in the Government Securities Manual.
(b) A clause should be inserted in the security bonds to the effect that any
cost that may be incurred on account of the safe custody or renewal of the securities
lodged by the officers should be borne by them.
(c) Departmental Officers should, at least once a year, see that the market
value of Government papers which have been furnished as security is sufficient to
cover the amount of security required. The valuation should be made with reference
to the prices prevailing on the 1st April last. It will be necessary to readjust the
amount of Government paper only if—
(i) The securities have appreciated so considerably that notes of the face
value of ` 100 or more may be withdrawn still leaving a balance, the
market value of which is sufficient to cover the amount of security
plus 5 per cent to provide against fluctuations, or
(ii) The value of Government paper has so depreciated that additional
security of the face value of not less than ` 100 should be deposited
to bring the total market value up to the amount of deposit required
plus 5 per cent.
Any re-adjustment under clause (i) need be made only if the depositor
himself desires it while in the case of clause (ii) re-adjustment should be made
irrespective of the depositor’s wishes.
DEPOSITS IN RECOGNISED BANKS
15.2.3. (a)*
(b) (i) Deposit receipts of the Reserve Bank of India, the State Bank of India,
the State Bank of Travancore, the Kerala State Co-operative Bank Ltd., and the Cochin
Central Co-operative Bank Ltd., produced by contractors for departmental works and
made out in the name of the pledgee may be accepted as valid, for purposes of tender and
security deposit.
(ii) Deposit receipts of the Indian Overseas Bank, the South Indian Bank
Ltd., and the Bank of India produced by contractors for departmental works and made out
in the name of the pledgee may be accepted as valid for purposes of earnest money and
security deposit provided that the bank concerned lodges with Government sufficient
Government securities to cover the amount of the receipts with a margin of 5 per cent on
the market value.
*Omitted as per G.O. (P) 290/69/Fin., dated 9-6-1969.
168 DEPOSITS
(c) The depositor should receive the interest when due direct from the bank
on a letter from the pledge authorising the bank to pay it.
15.2.4. Security deposits in cash should be invested in the Government
Savings Bank in Treasuries in accordance with the Savings Bank Rules. When
savings bank deposits are taken as security, the deposits may be in the name of
the depositor who should, however sign a letter of agreement to the Savings
Bank binding himself not to draw the money without the sanction of the
Government Officer to whom the security is pledged and authorising the Savings
Bank to pay the money to that Officer if required. The Pass Books should be
kept in the safe custody of the Officer to whom they are pledged.
15.2.5. Cash deposits of contractors may be converted, at the cost of
the depositor, into one or more of the forms of interest-bearing securities
provided that—
(i) the depositor has expressly desired this in writing, and
(ii) the acceptance of the new form of security is permissible under the
rules as well as under the terms of the agreement or bond.
15.2.6. Cash which has actually been received or recovered may be
converted even though the full amount of the deposit, which being paid in
instalments, has not yet been realised.
Note.—Percentage deductions for a contractor’s bills for the due fulfillment of a con-
tract should not be invested in Government securities as the form of contract
does not provide for the payment of interest to contractors on these sums.
15.2.7. Percentage deductions on account of security made from
contractor’s bills should also be credited to the head “Public Works Deposits”.
As an exception to this general rule, the security may be exacted by withholding
from payment the required percentage of the value of work actually measured
and passed, if the total amount recoverable on this account during the Official
year in any case is so small that its exclusion from the works outlay of the year
is not likely to affect the grants appreciably. The limit fixed for the purpose of
this rule is ` 500 for each work. Amounts thus withheld appear in the suspense
account, “Contractors—Other Transactions/Advance payments” of the work
concerned—vide paragraphs 10.5.14 and 10.5.18.
“* (b) The contractors will be allowed to open deposits in Treasury equal to
the amount of retention money in favour of the Executive Engineer in charge of the
work subject to the condition that if recoveries are to be made from such retention
* Insertion. G.O. (P) No. 56/73/Fin, dated 21-2-1973.
DEPOSITS 169
deposits, interest for such recoveries for the period for which such amounts become
due to Government will also have to be recovered from the deposits. The contractors
should deposit the entire retention money initially in banks before the first running
account bill is passed and paid and that additional retention money on the basis of the
revision of the probable amount of contract should also be deposited in banks before
the first bill in which such extra claims in excess of the original probable amount of
contract is passed and paid”
15.2.8. Without the special orders of competent authority, no security
deposit should be repaid or retransferred to the depositor, or otherwise disposed
of except in accordance with the terms of his agreement or bond.
“* The maximum period of retention of the security deposit will be six
months from the date of completion of the work and the security amount, shall, if
necessary, be released earlier at the discretion of the Executive Engineer
concerned, provided he is convinced that the amount as per the final bill cover
all liabilities of the contractor and record certificate to that effect and provided
also the contractor has produced the latest clearance Certificate of Income tax
and Agricultural Income tax and Sales tax.”
15.2.9. The depositor’s acknowledgement should be obtained in all cases of
security returned. When an interest bearing security is returned or re-transferred,
the acknowledgement should set forth the full particulars of the security.
†Note.—The percentage deduction from bills which are hold an additional security
should be released by the officer competent to pass the final bill, at his dis-
cretion, after the successful completion of the work and finally taking over
by the department retaining such amount as he may consider necessary to
cover the liabilities, if any, of the contractor.
15.3. OTHER DEPOSITS
I. FOR WORKS
15.3.1. Deposits for works are passed through the head “Public Works
Deposits”. Such works are known as Deposit Works and the detailed rules
relating to them are given in Chapter 16.
II. CONTRACTORS’ CLOSED ACCOUNTS
15.3.2. Under the rules in paragraph 10.5.21. sums due to contractors on

closed accounts may be placed in the deposit account. When a sum so held in
deposit is ultimately paid to the contractor concerned his acknowledgement
should set forth such particulars as would establish the settlement of his
account in connection with the work concerned.
* Insertion. G.O. (P) No. 56/73/Fin, dated 21-2-1973.
† Addition. G.O. (P) No. 95/PW dated 19-6-1969.
170 DEPOSITS
III. SUMS DUE TO OTHER GOVERNMENTS ON

CLOSED ACCOUNTS
15.3.3. Under the rules in paragraph 10.5.22. sums due to other

Governments on closed accounts may be placed in the deposit account.
IV. MISCELLANEOUS
15.3.4. All other deposits are closed as Miscellaneous Deposits. This

head also holds, until clearance, all items of receipts, the classification of which
cannot at once be determined, or which represent errors in accounting awaiting
adjustment.
15.4. LAPSED AND CONFISCATED DEPOSITS
15.4.1. In the accounts for March each year, the following classes of
items in the Public Works Deposit account should be credited to Government as
lapsed deposits:—
(i) Original deposits not exceeding five rupees remaining outstanding for
one whole account year.
(ii) Balances not exceeding five rupees of items partly cleared during the
year then closing.
(iii) Balances unclaimed for more than three complete account years.
Note.—For the purpose of this rule the age of a repayable item, or of a balance of it is
be reckoned as dating from the time when the item or the balance, as the case
may be became first repayable. (See also Article 296 of the Kerala Financial
Code.)
15.4.2. Deposits credited to Government under paragraph 15.4.1.or
confiscated under the provisions of an agreement or bond, cannot be repaid
without pre-audit by the Accountant General who will authorise payment on
ascertaining (1) that the item was really received, (2) that it was credited to
Government as lapsed or confiscated, and (3) that the claimant’s identity and
title to the money are certified by the Divisional Officer. The amount repaid
should be treated as a refund of receipts under the major head to which it was
credited and the repayment should be noted in the Deposit Register against the
entry for its credit to Government—vide paragraph 9.4.2.
DEPOSITS 171
15.5. ACCOUNTS OF PUBLIC WORKS DEPOSITS
I. DEPOSIT REGISTER
15.5.1. A record of the transactions relating to Public Works Deposits should

be maintained in the divisional office in a register in the same form as the Suspense
Register, K.P.W. Form 62. The deposit register should show, month by month, the
total receipts and adjustments and the closing balance of each separate deposit item;
but in respect of deposits for work to be done which are accounted for in detail in
the Schedule of Deposit Works, K.P.W. Form 61, a single entry for all such
deposits will suffice.
II. SCHEDULE OF DEPOSITS
15.5.2. From the Deposits Register, a monthly abstract known as the Schedule
of Deposits, K.P.W. Form 75 should be prepared for submission to the
Accountant General. This form is in two parts—Parts I, Abstract Account giving the
total for each class of deposits and Part II, detailed extract from the Deposit
Register. In Part II only such items need be extracted as are affected by the months’
transactions.
Note.—The entry for deposits for work to be done will be supported by the Schedule of
Deposits Works.
15.6. ACCOUNTS OF INTEREST—BEARING SECURITIES
15.6.1. Transactions connected with interest-bearing securities do not pass

through the cash book and consequently the regular accounts of the division,
unless any cash actually passes through the hands of officers of the Department,
which should be avoided as far as possible. A register of the receipt and disposal
of these securities should, however, be kept in K.P.W. Form 81 Register of Interest-
bearing Securities.*
Note:—(1) If a security recovered in instalments is being deposited in the Treasury
Savings Bank, no entries should be made in respect of it in the register in
K.P.W. Form 81 until the security has been fully paid up.*
Note:—(2) If any Savings Bank deposits have been pledged to a Sub divisional Officer
under paragraph 15.2.4. the register for such securities should be kept by
him.*
* * *
*Deletion vide G. O. (P) No. 766/85/Fin., dated 28-11-1985.

172 DEPOSITS
15.6.2. When a subordinate who has furnished an interest–bearing

security is transferred to another division or department, the security should be
kept in the original division until such period as is specified in the agreement to
cover any amounts that may be subsequently ordered for recovery in respect of
the period during which he was under the original Divisional Officer. At the end
of the period, the security should be released from the pledge and passed on to
the new Divisional Officer or a responsible officer of the Department to which
he is transferred, for returning the security to the pledger and sending his
acknowledgement to the Divisional Officer concerned. In case the new post of
the subordinate is also one in which a security should be furnished, the officer
concerned should immediately take the necessary steps to get a formal agreement
and to have the securities duly pledged in his own favour. The acknowledgement
mentioned above should, however, be obtained and sent to the first officer. No
security need be insisted upon by the second officer until the original is
transferred and is duly pledged, but he should satisfy himself, by a reference to
the Divisional Office from which the subordinate was transferred, as to the
amount of security lodged there, the sufficiency thereof, and the likely hood of
recoveries that may be made before is transfer. There should be a provision in
all security bonds that the security shall be available as security for any new post
to which the officer may be transferred.
NON-GOVERNMENT WORKS 173
CHAPTER–16
NON-GOVERNMENT WORKS
16.1. INTRODUCTORY
16.1.1. Non-Government works are divided into two classes :

(1) Deposit Works and (2) Local Loan Works.
16.1.2. The general rule for the exhibition in accounts, of transactions
relating to contributions from Central or State Revenues to Local Funds and
Public bodies, and vice versa, as contained in Article 34 (a) of the Kerala
Account Code, Volume I is reproduced below:—
“Contributions made by the Central or the State Government to District
Boards, Municipalities, etc. or vice versa, shall be debited as expenditure or
shown as receipts (as the case may be) under the head of account most closely
connected with the object for which the contributions are made. Thus a grant for
the construction of a school will be debited to “28—Education”; a grant for the
construction of a drainage system to “30—Public Health”; and a grant for the
construction of a road to “50—Public Works”; while a grant given for general
purposes, such as grant to make good a deficit or as compensation for revenue
resumed, will be classified under “71—Miscellaneous”.
Note.—(1) If a work for which Government give financial assistance is executed as a
deposit work by the Public Works Department on behalf of a local body,
the Government’s contribution should not be paid in cash to the local
body, but should be adjusted by transfer of credit under the head “Public
Works Deposits”, and debited to “Grants-in-aid” under the Public Works
Major head concerned, irrespective of the object of the assistance. The
deposit account of a local body which has not withdrawn its balance from
the Treasury will simultaneously be credited and debited with the amount.
Ordinarily in the case of—
(a) contribution works which are executed partly from Government funds or
grants-in-aid and partly from the funds of local bodies and also in the case of—
(b) irrigation contribution works which are financed partly by the Government
and partly by private bodies, the Government contribution or an instalment of it will
be paid only after the local body has paid out of its own funds corresponding amount,
174 NON-GOVERNMENT WORKS
e.g., in the case of a work costing one lakh to which the Government have under taken
to contribute ` 75,000 and instalment of ` 30,000 may be paid by Government as soon
as the local body makes payment of ` 10,000. The bills on which the Government
contribution is adjusted in this manner should be countersigned by the Divisional
Officer who should see that the rule is observed. If in the case of works of class (a) and
(b), it is considered not desirable to suspend the works pending receipt of contribution,
Government money may be spent in advance of its turn, but interest shall be charged
on the amount so spent for the period it is advanced. In such cases, demand for
payment of the contribution shall ordinarily be made at least a month before the
money is required and the date on which it should be paid shall be stated in the
demand, and interest will accrue from that date or from such later date on which
Government money may be actually advanced. If there are not sufficient Government
funds in a year to be utilised on the works pending receipt of the contribution due
from the local body or private body concerned, orders of Government shall be obtained
for the provision of funds in proper time. In cases where the excesses are comparatively
small appropriation to cover such excesses as are not expected to be cleared before
the end of the financial year shall be obtained from Government in December of each
year under the suspense head “Miscellaneous Public Works Advances”. The rule
regarding recovery of interest on Government money spent in advance of its turn may
be relaxed in the case of the amount spent in advance of the first instalment payable
by a local body for a contribution work which is partly financed by that body by
means of a loan. For Government money spent in advance of the second and
subsequent instalments, interest shall be charged unless in any case Government decide
not to charge interest.
Note.—(2) A contribution paid by a local body or a private person or body with the
express object of meeting the whole or a part of the cost of construction
by the Public Works Department of a specific work which is eventually to
be the property of Government, should be credited as revenue receipts of
the Government corresponding to the expenditure major head (including
Capital Head of Account) under which the provision for such work is
made.
16.1.3. In the public works account contributions made to local bodies are
charged to the minor head “Grants-in-aid” under the major head “50—Public Works”.
16.1.4. When works already constructed, or land already purchased are
transferred, free of charge, to local bodies no re-adjustment of cost in the
accounts is necessary.
16.1.5. For every non-Government work there must be a duly sanctioned

detailed estimate or requisition, as the case may be, in the same way as for a
Government work for which powers have been delegated to the officers of the
Department.
16.2. DEPOSIT WORKS
I. GENERAL
16.2.1. When a deposit work is to be carried out, the local body or other party
concerned should advance the gross estimated expenditure or the share which is payable
by it, to the Divisional Officer in one lump sum, or in instalments and by such dates as
may be specially authorised by the Government (vide paragraph 186 of the Kerala Public
Works Department Code). No non-Government work shall be executed before receipt of
contribution there for without the special orders of Government except in the cases
specified in paragraph 16.1.2. Where payment in instalments is authorised owing to the
difficulty of depositing the full estimated amount in advance in the case of large works,
the Divisional Officer should forecast his probable requirements on each such work for
the succeeding month and apply to the local bodies concerned for funds and the latter
should without delay pay the instalments to the Divisional Officer. The amount received
should be credited in the accounts to the head “Public Works Deposits” against which
will be debited all expenditure incurred upto the amount of the deposit. Any expenditure
incurred in excess of the amount deposited should be debited to “Miscellaneous Public
Works Advances” pending recovery—Vide paragraph 13.3.3.
Note.—(1) If preferred the local body concerned may be authorised to pay the deposit
direct into the treasury. In the case, the accompanying chalan should state
clearly that the amount is creditable to the Public Works Department, naming
the division and the work to which the deposit relates.
Note.—(2) A local body which has a current with the Government treasury may be
authorised to draw a cheque on the treasury in favour of the Divisional
Officer and this will be paid at the treasury by transfer credit to the Divisional
Officer’s account (Public Works Deposits). Similarly for the unspent bal-
ances the Divisional Officer will draw a cheque in favour of the local body by
transfer credit to the deposits of local funds.
Note.—(3) In cases the maintenance of roads on the banks of rivers, canals and
channels devolves entirely on local bodies, and the works pertaining
there to are executed by the Public Works Department as full contribution
works, if the Divisional Officer considers it undesirable to suspend the
works pending receipt of contribution from the local bodies, Government

money may be spent in advance, interest being charged on the amount so
spent; when this course is adopted the procedure in the last three sen-
tences of the first sub paragraph of Note 1 under paragraph 16.1.2.should
be followed.
16.2.2. A consolidated record of the transactions of a month relating to all
deposit works of the division should be prepared in K.P.W. Form 61 Schedules of
Deposit Works. This schedule shows, in respect of each work, the amount of deposit
received and the expenditure incurred, both during the month and up-to-date.
Note.—(1) Refunds of unexpended balances of completed works should be taken in
reduction of the deposits and therefore, shown in the Schedule as minus
realisations and not as expenditure.
Note.—(2) All payments of decretal amounts pertaining to ‘Deposit Works’ should
be charged on the Consolidated Fund of the State under the head of ac-
count “50—Public Works—Suspense—Miscellaneous Public Works Ad-
vances—other items—(charged)”. These should simultaneously be trans-
ferred to the Deposit work concerned by debit to ‘Public Works Depos-
its’, if sufficient funds are available or to “50—Public Works—Suspense—
Miscellaneous Public Works Advances—Expenditure incurred on De-
posit Works in excess of deposits received—(voted)” in case sufficient
funds are not available, in accordance with the instructions contained in
paragraph 16.2.1.and 13.4.3.respectively.
16.2.3. The amount of each deposit should be rateably divided into two
parts, one representing the share available for works expenditure and the other
the total amount chargeable as establishment, tools and plant, audit and accounts
and pensionary charges, if any, recoverable under the rules vide Appendix 2 to
Kerala Account Code, Volume III reproduced in Appendix 9 to this code. In the
schedule, the deposit received for each work should be numbered as a single
item but the transactions relating to the two parts of it should be shown
separately thus:—
For works expenditure
For percentage charges.
16.2.4. The percentage leviable should be adjusted month by month as the
works expenditure is incurred.
16.2.5 In the case of deposit works to which Government have
contributed, no refund should be made to a local or other body from any
unexpended balance at the credit of “deposits” without the sanction of
Government. The Divisional Officer should report through the Superintending
Engineer and the Accountant General the actual cost of the work, the shares to
be borne by the local body and by Government, the amount actually contributed
by each, and the amount refundable. After verification by the Accountant
General, sanction will be accorded to the refund. The Divisional Officer should
then refund what is due to the local or other body and credit the unexpended
balance of the Government contribution to the Civil Department through the
remittance head by a minus credit to the head “Public Works Deposits”. The
Accountant General will adjust this amount by credit to the service head to
which the contribution was originally debited.
Exception:— In the case of water supply and drainage schemes financed partly by
the local bodies and partly by Government the materials that surplus at
the site of the work after their completion shall be taken over by the
local body concerned. For the purpose of this transaction, the surplus
materials shall be valued at 50 percent of their book value. Of the
amount so arrived at, a share proportionate to the local body’s share of
the credit realised by the sale of the materials, and the balance shall be
recovered from the local body; the former amount should by book ad-
justment be exhibited as a minus credit to “deposit” in the divisional
accounts, representing refund of unspent balance set off against a
corresponding minus debit afforded to the same head as reduction of
expenditure on the work. The amount surplus materials should be cred-
ited in full to the Government share of the expenditure in the divisional
accounts supported by a sale account in the proper form. The report or
statement to be furnished to the Accountant General for verifying the
correctness of the refund of the unspent balance should contain brief
particulars of the adjustment of the value of the surplus materials to
facilitate check in the Accountant General’s office.
II. LOCAL FUND WORKS
16.2.6. The procedure prescribed in paragraphs 16.2.1. to 16.2.5. above

will apply.
Exception:— Works executed on behalf of Panchayats and construction work under
the Poor Housing Scheme and Subsidised Rental Housing Scheme for
the weaker sections of the community, in the State are exempt from
payment of centage charges.
16.3. LOCAL LOAN WORKS
16.3.1. The rules under which payments on account of Local Loan Works
may be made in the Public Works Department are detailed below:—
(1) Every loan to a Municipality, Port Trust or any other Quasi-public body
or person will be recorded in the books of the Accountant General, and no part of it
may be issued except under his authority.
(2) No Department or Government officer may incur any expenditure or
liabilities against a sanctioned loan unless a statement in writing is first obtained from
the Accountant General that the amount is available out of such a loan and has been
placed in separate account so as to be available for the proposed expenditure.
(3) Funds spent by any public department or officer under Rule II shall
reckon for interest as if they were drawn on the last day of the month in the accounts
of which they are included by the spending department or officer.
Note.—Rules 2 and 3 may be modified at the discretion of the Government.
16.3.2. Expenditure on a Local Loan Work, incurred in accordance with the
foregoing rules and under orders of competent authority, should be accounted for
as outlay against the sanctioned loan, under the head “P—Loans and advances by
the Central Government” or “Q—Loans and advances by the State Governments”
as the case may be, and shown in the schedule of Debits of Miscellaneous Heads
of Accounts, K.P.W. Form 71 supported by a schedule of works expenditure.
16.3.3. All charges debitable to a loan should be brought to account as
they occur, so that the interest charges may be correctly calculated and adjusted
in the Accountant General’s office.
Note.—This rule applies also to the percentages (vide paragraph 16.2.3.) leviable
under the rules which should, therefore, be adjusted monthly by inclusion in
the Schedule of Works Expenditure.
16.3.4. The limit of funds set aside of expenditure on a work during the
year should be ascertained from the Accountant General by the officer authorising
the expenditure, and communicated to the Divisional Officer for guidance. This
limit should be treated as the appropriation for the work and should not be
exceeded without special orders.
TRANSACTIONS WITH OTHER DIVISIONS, DEPARTMENTS AND GOVERNMENTS 179
CHAPTER–17
TRANSACTIONS WITH OTHER DIVISIONS, DEPARTMENTS AND
GOVERNMENTS
17.1. GENERAL RULES
17.1.1. The conditions under which one department of the public service may
raise debits against another department under the same Government, or any department
under another Government; for services rendered or articles supplied to it, are
regulated by the directions contained in Chapter 4 of the Kerala Account Code,
Volume I.
Note.—(1) Subject to such general exceptions as may be authorised by Government
in the case of petty works, all charges connected with the construction
and maintenance of buildings, etc., for the several Civil Departments of
Government will be brought to account as expenditure of the Public Works
Department(Civil Works Section) or of the Civil Department concerned,
according as the administration of the work rests with the Public Works
Department or is vested in or is transferred by a general or special order
of Government from the Public Works Department to the department us-
ing or requiring it.
Note.—(2) The value of stores issued to other departments is chargeable to them.
17.1.2. The cost of land acquired by the Civil Authorities on behalf of the Public
Works Department is debitable in the accounts of the latter as part of the cost of the
works for which the land is taken up ; but when it is taken up for two or more non-
commercial departments conjointly the charge is not divided, but is wholly debitable
to the department for which the greater part of the land was taken up, unless there are
special reasons to the contrary.
17.1.3. When a special officer is employed for the acquisition of land for the
Public Works Department, the expenditure on pay, allowances etc., of the special
officer and his establishment and any expenditure on contingencies is debitable to
the Public Works Department as part of the cost of works for which the land is
acquired. When the land is taken by a civil officer, not specially employed for the
work, only special charges incurred in connection with the acquisition of the land on
establishment, contingencies, etc., will be borne by the Public Works Department as
part of the cost of works for which the land is acquired.
180 TRANSACTIONS WITH OTHER DIVISIONS, DEPARTMENTS AND GOVERNMENTS
17.1.4. The rent of buildings hired for use as residences of Government servants
of any civil non-commercial department is chargeable in the accounts of the Public
Works Department. In special cases when the hired residences are, under the orders
of Government, placed under the charges of any other department, the charges on
account of rent in connection with such residences will be disbursed and borne by
that department. When any land or building not belonging to the Public Works
Department is hired by another department to be occupied for any other public
purpose, the rent is payable by the department concerned, and Divisional Officers do
not disburse rent for such premises unless ordered by Government to do so.
17.1.5. When prison labour is employed on Public Works, no charge is made, by
the Jail Department if the convicts are employed on Jail works, but in other cases the
full market value of the work performed, as certified to by the Divisional Officer, is
charged to the Public Works Department by corresponding credit to the Jail
Department.
17.1.6. (a) When any Government land with improvements thereon or any
building is transferred from one Service Department to another under the State
Government, the transfer shall be made free of charge.
(b) When any Government land with improvements or building in the
possession of one Service Department is transferred to another Service Department
or a branch of any Service Department, for a specific purpose of starting any industry
or commercial undertaking of a remunerative nature, it shall be competent for the
Government, to order the collection of market value of the lands and improvements
transferred to such Service Department or a branch of the Service Department,
according to the merits of each case.
(c) When any land with improvements or any building is transferred from
or to a commercial Department, the full market value thereof or the book value
whichever is higher should be charged.
(d) The value of lands, improvements and buildings transferred to a
Commercial Department under (c) above or to a Service Department or branch of a
Service Department under (b) above shall be fixed by the District Collector adopting
the principles of valuation accepted under the Land Acquisition Act and Rules.
(e) When the purpose for which the land was transferred to the Service or
Commercial departments as the case may be under (b) or (c) above has ceased, or in
the event of such land or portion thereof not being required any further by such
department or institution, such land or portion thereof shall revert to Government and
the amount of compensation, if any, payable to such department shall be fixed by the
Collector of the District in which the land is situated, provided that in no case such
compensation shall be fixed in excess of the value realised under (b) or (c) as the case
may be.
17.1.7. Services rendered, or articles supplied, by one division to another will
not be charged for except in the following cases:—
(i) Stores.—if they are issued from a Stock or Materials account (vide
paragraphs 10.5.14 and 10.5.15.) or if their transfer affects a work for which a separate
capital account is kept.
(ii) Other Services.—if they affect the accounts of (a) any work for which a
separate capital account is kept, (b) a work in progress, (c) suspense or deposits.
17.1.8. Amounts owing by one Public Works Division to another, including the
Divisions of Other Governments, should be paid by cheques or Bank Drafts (See
Note 1 below Rule 2 of Appendix 8), while those due to other Departments of the
same Government or non-Public Works Department of other Governments should,
in the absence of any orders to the contrary, be adjusted by book transfer.
17.1.9. Cash recoveries made from employees, contractors, etc., as also revenue
realised, by a division on behalf of other divisions, departments or Governments,
should be passed on to them, the payment being made in the manner prescribed in
paragraph 17.1.8. Cash obtained from treasuries on cheques and cash receipts
(including surplus cash) remitted to treasuries are accounted for as remittance
transactions.
The detailed procedure to be followed in the settlement of transactions relating
to cash recoveries, etc., made by one Public Works Division on behalf of another
Division is indicated in Rule II (i) of Appendix 8.
17.2. ACCOUNTS PROCEDURE
17.2.1. (a) When a transaction has to be cleared by a book transfer under the
foregoing rules, the transfer should be effected by debiting or crediting it to the
remittance or other head concerned in the Cash or Stock Account if it appears therein,
or by an entry in the Transfer Entry Book. See also paragraph 22.4.5. in respect of
cash obtained from treasuries on cheques.
(b) When a transaction on account of supplies made or services rendered,
etc., has to be settled in cash, i.e., by cheque/bank draft, the monetary settlement
should be effected by debiting the amount due, to the suspense head “Cash Settlement
Suspense Account” under “T—Deposits and Advances—Part IV—Suspense—
Suspense Account” pending clearance on receipt of cheque/bank draft from the Division
concerned. The detailed procedure to be followed in his regard is given in
Appendix 8.
Note.—(1) Such percentage charges on account of supervision and establishment
and tools and plant as may be leviable under the rules, should also be
included, by a transfer entry, in the amount transferred. See also para-
graph 14.2.5.
Note.—(2) The cost of workshop jobs need not be adjusted monthly, vide paragraph
4.2.4.
Note.—(3) Since all interdivisional transactions irrespective of the fact whether the
Divisions fall within the same Circle of account or in different Accounts
Circles, are required to be settled in cash, vide paragraph 17.1.8—the
minor head “Cash Settlement Suspense Account” has been subdivided as
under:—
(i) ‘Transactions between Divisions rendering accounts to the same Ac-
countant General’ and
(ii) ‘Transactions between Divisions in different Account Circles’.
(c) The following procedure shall apply in regard to the settlement of interdi-
visional transactions for a particular month relating to a Division if the amount in-
volved for that month is less than ` 10.
(i) In the case of transactions requiring settlement with local divisions,
the remittances may be made in cash through a special messenger.
The Receiving Division should issue a receipt in K.P.W. Form 3 which
would ensure that the amount is accounted for correctly in the cash
Book. This receipt would form the voucher for the paying Division.
(ii) The payments at outstation may be remitted by money order and the
money order commission may be charged to “Office-Contingencies”.
The money order receipts granted by the Post Office and the Payee’s
acknowledgement would be treated as vouchers by the Paying Divi-
sion
17.2.2. In cases, however, in which the transaction originates in another
department of the same or another Government, the responding transfer should, as a
rule, be made on receipt of intimation of the original debit or credit through the
Accountant General.
17.2.3. The following are exceptions in which the adjustments may be made
without receipt of intimation from the Accountant General.
(1) Recoveries of rent realised, on behalf of the Public Works Department,
by disbursing or Accounts Officers of other account circles, provided the entries are
supported by certificates in Form 45 Statement of Rents recoverable in cash or by
deduction from Pay Bills, signed by those officers, to show that the amounts adjusted
in the accounts have been realised from the parties concerned, See paragraph 9.3.10.
(2) Any other transactions authorised by the Accountant General.
17.2.4. The responding division should examine every transfer/claim advised to
it for adjustment/payment by it may not reject a transfer/claim because the voucher is
not in order, or is wanting. Nor may a transfer/claim advised be partly accepted and
partly rejected; it may be rejected altogether if it does not pertain to the division;
otherwise it should be accepted provisionally in full and the dispute, whether as to
the amount or as to other particulars of the transactions should be settled separately
in communication with the officer who advised the transfer.
Note.—Railway debits for amounts, due on warrants and credit notes, passed on by
the Accountant General for adjustment in the divisional accounts, should be
accepted in full, subject only to re-adjustment, later on, of under or over-
charges. The responding officer is not responsible for the correctness of the
charges with reference to the railway tariffs but only for proper scrutiny with
reference to the propriety of the charges as against the head of the service
concerned; the calculations made by the Railway Accounts Department, which
are test checked by the Railway Audit Department, should be accepted as
correct.
17.2.5. (a) When a charge is transferred to another department or Government
for adjustment, the transfer is required to be supported either by the necessary
vouchers, complete in all respects, or by a certificate signed by the Accounts Officer
of the department originating the transfer to the effect that the payment vouchers
have been dully audited and passed in accordance with the rules. Divisional Officers
are, therefore, responsible for obtaining proper vouchers in support of all charges to
remittance heads in their accounts.
(b) Similarly, in the case of transactions between Public Works Divisions,
including the Divisions of other Governments, the claims should be supported by all
necessary vouchers, except those relating to work done for other divisions, for which
See paragraph 17.2.7. (b)
Note:—The term “all necessary vouchers” referred to above also includes such vouch-
ers as do not ordinarily pass beyond the Divisional Office.
(c) When it is not possible to support to a payment by a voucher or the
payee’s receipt a certificate of payment should be sent along with the claim, vide Note
below paragraph 6.4.8.
Note:—In the case of stores issued from ‘stock’ by one division to another within the
same circle of account, the division issuing the stores, may claim the amount
from the other division on the basis of issues supplemented by the receipt of
the indentor or his authorised agent, vide paragraph 7.2.11.
17.2.6. When a transaction originates in a Public Works division the necessary
transfer or preferment of claim should ordinarily appear in the accounts of the division
for the month in which the transaction occurred, but in the case of work done in
workshops the cost is adjustable in accordance with the rules in paragraphs 14.2.3.
to 14.2.5.
17.2.7. (a) In respect of work done in a division for other departments, or
Governments the intimation of the transfer will be given after audit, by the Accountant
General to the Accounts Officer concerned, or to the department for which the work
is done if in the same circle of account. The division undertaking the work is
responsible that the transactions are brought to account under the remittance or other
head concerned and that works accounts are maintained and vouchers submitted to
the Accountant General in the same way as for works of the division itself. It will
further be responsible that the estimate and appropriation for the work, is
communicated or accepted by the party for which the work is done are not exceeded
without further authority from it and if any savings are anticipated, they are notified
and surrendered in time.
(b) As regards work done in a Public Works Division on behalf of another
Division, including the Divisions of other Governments, the claims should be settled
by the Divisions amongst themselves, without the intervention of the Accountant
General. The requisite vouchers should however be sent to the Accountant General
with the Monthly Account. If as a result of audit, it is noticed that an excess payment
has been made, the responding Division will claim the amount of excess from the
originating Division by operating on the suspense head “Cash Settlement Suspense
Account”, treating the item as an original transaction. On the contrary, if short payments
are noticed in audit, the originating Division will send a supplementary claim for the
balance to the other Division.
In order to enable the Public Works Divisions to settle the excess/short
payments in the manner indicated in this paragraph, the Accountant General will
notify the discrepancies noticed in audit both to the originating and the responding
Divisions.
Note.—(1) For the purpose of this paragraph work done includes jobs executed in
workshops.
Note.—(2) In the case of works which are assessable to percentage recoveries on
account of establishment, tools and plant, etc., the amount of the estimate
and appropriation, for the work should be rateably broken up into two
parts to represent, respectively, the works expenditure and the percentage
charges.
Note.—(3) The provision regarding audit before intimation of transfer may be relaxed
in the case of any item appearing in the accounts for March and requiring
adjustment with another Government (other than a Public Works Division
of that Government) vide paragraphs 22.4.19 and 17.2.7. (b)
17.2.8. In cases in which transactions originate in another department or
Government, and the intimations of transfer of debits or credits are received through
the Accountant General (paragraphs 17.2.2 and 17.2.3.) the Divisional Officer should
examine such transfers, as expeditiously as possible and report all his objections to
the Accountant General whether the transfer is brought to account provisionally or
rejected.
17.2.9. The Divisional Accountant will be responsible that there is clear authority
of the responsible disbursing officer of his division for claims/transfers advised to
other divisions, departments, or Governments and that no charge advised by another
division, department or Government is finally paid/adjusted until all the necessary
vouchers [except those relating to work done—Vide paragraph 17.2.7 (b)] have
been received and further been completed by obtaining thereon, from the responsible
disbursing officers of the division, the classification of the charge as attested by their
dated initials. He should further see that, when a transfer/claim advised to the division
for adjustment/payment is responded to provisionally, the objection raised thereon
is pursued with a view to ensure speedy settlement.
186 PAY AND ALLOWANCES
CHAPTER–18
PAY AND ALLOWANCES
18.1. INTRODUCTORY
18.1.1. Pay and allowances of Government servants of the department, if

not charged directly to works, as well as all personal advances sanctioned by
competent authority, are drawn from treasuries on bills in forms, and in
accordance with the procedure prescribed in Chapters V, VI and X of the Kerala
Financial Code and sections I to III of Part V of the Kerala Treasury Code,
Volume I, which are applicable to the Public Works Department subject to the
special rules laid down in this chapter and the Kerala Public Works Department
Code.
Note.—The sanction of competent authority to personal advances may, if preferred,
be obtained in the form of counter-signature on the bill itself before it is
presented at the treasury.
18.2. CLASSIFICATION
18.2.1 Bills paid at treasuries are incorporated in the general accounts

kept by the Accountant General. Drawing Officers are however, responsible that
the major head and other particulars necessary for determining the accounts
classification (vide Statement D of Appendix 3) are recorded on each bill.
Note.—The cost of any special establishment for acquisition of land, entertained
under orders of Government by a Civil Officer acting as a Public Works
Disburser, is chargeable as the cost of the works concerned and not as general
establishment charges, vide paragraph 17.1.3.
18.2.2. If as permitted by Article 87 (d) (ii) of the Kerala Financial Code,
Volume I, emoluments up to the date of transfer are not drawn before a
Government servant proceeds on transfer, emoluments for the whole month may
be drawn in the new appointment, the allocation of the charge to the old and new
appointments being clearly specified on the bill.
Note.—In the case of non-gazetted officers, the last pay certificate should give all the
necessary information, so that the necessary allocation may be correctly noted
by the drawing officer in the bill of the new office. In the case of Gazetted
Officers, whose last pay certificates are prepared by Treasury Officers, the
responsibility for showing the correct allocations in bills rest with the officers
themselves.
PAY AND ALLOWANCES 187
18.3. ENCASHMENT OF BILLS
18.3.1. Non-gazetted Officers bills should be presented at the nearest

district treasury for payment. They should be accompanied by a memorandum
signed by the drawing officer and specifying separately the amount of (a) cash
required for disbursement and remittance to be made in cash, (b) cash orders or
Reserve Bank drafts, as the case may be, required on each of the sub-treasuries
subordinate to the District Treasury for payments to be made to establishments
stationed near the sub-treasuries and (c) Reserve Bank drafts on other treasuries
or agencies of the Bank for amounts which have to be disbursed outside the
district but within the jurisdiction of the drawing officer.
Note.—The Divisional Officer may in place of the system of obtaining cash orders on
sub-treasuries for payment to establishments stationed near the sub-treasuries
[as in item (b) above] adopt the system of presenting separate bills for such
establishments direct at sub-treasuries. But one or other of these two systems
must be followed through-out each division and not both.
18.4. DISTRIBUTION OF PAY AND ALLOWANCES
I. GENERAL
18.4.1. Special attention is invited to Rule 169 of the Kerala Treasury

Code, Volume I, prescribing the procedure for distribution of pay and allowances
to establishments. Acknowledgements should as far as possible, be taken on
office copies of bills, but where this may not be convenient or advisable as in the
case of scattered establishments, consolidated receipts on Acquittance Roll, Form
T.R. 95 in the Kerala Treasury Code, Volume II, may be obtained, separately for
each set of payments made at one place or at one time.
Note.—Acquittance rolls and receipted office copies of bills are not required to be
submitted to the Accountant General, but as they are important records, they
should be stamped “paid” and preserved carefully for such periods as may be
prescribed by Government.
18.4.2. Cash drawn on pay and travelling allowance bills of establishments
should not be mixed with the regular cash balances of the department, vide
paragraph 6.2.5.
Note.—This rule applies also to cash received by a subordinate officer for payment of
pay and allowances of Government Officers serving under him.
188 PAY AND ALLOWANCES
II. MISCELLANEOUS RECOVERIES FROM

ESTABLISHMENT
18.4.3. Ordinarily recoveries on account of security deposits of employees

should be made in cash when their pay is disbursed and should be credited in
the cash book of the disbursing officer. When the amounts recovered have to
be paid into a Treasury Savings Bank as security deposits, they under
paragraph 15.1.1. also.
Note.—(1) Government in consultation with the Accountants General, may, however,
prescribe that security deposits should be deducted from pay bills.
Note.—(2) The rule in this paragraph applies mutatis mutandis to all recoveries from
employees which are creditable, under the rules, to some head in the
compiled accounts of the division.
18.5. SPECIAL ARRANGEMENTS TO PREVENT

DELAYS IN PAYMENTS
18.5.1. If the encashment of a bill for an advance on transfer is likely to

delay a transfer which is urgently necessary in the public interest, the advance
may be made from the permanent advance (if any), works imprest or other
available cash in the hands of the disbursing officer concerned, pending
recoupment when the bill is subsequently encashed. In the accounts of such cash
the amount advanced should not be charged off as final transaction, but recorded
as a temporary advance, so that the amount may continue to form part of the
cash balance for which the disbursing officer is responsible.
18.6. COMMUNICATION OF SANCTIONS TO

ACCOUNTANT GENERAL
18.6.1. The pay and allowances of Gazetted Officers only are subjected to
a system of personal audit. Orders affecting the personal emoluments, postings,
leave, etc., of Gazetted Officers only should, therefore, be communicated to the
Accountant General by the sanctioning authorities Changes in the personal of
subordinate establishments and in their emoluments should be indicated in pay
bills and absentee statements by the authorities preparing those documents,
who are responsible that orders of competent authority are obtained in each case
as required by the rules.
PAY AND ALLOWANCES 189
Note.—If an order affecting a Gazetted Officer is notified in the Gazette, separate

intimation to the Accountant General by letter is not necessary except in
cases of urgency.
18.6.2. All orders revising sanctioned scales or sanctioning the creation or
abolition of permanent or temporary appointments should at once be
communicated by letter to the Accountant General.
18.6.3. In the case of all transfers of divisional, sub-divisional or other
executive charges, a report of transfer of charge should be prepared in the
manner prescribed by Government and sent to the Accountant General through
the Superintending Engineer. Whenever the transfer of charge is prolonged so
that two Officers may be entitled to draw pay and allowances simultaneously for
the same appointment the Superintending Engineer should intimate to the
Accountant General if the time taken is reasonable and the relieving officer may
be considered as on duty for the period. If however, the Superintending Engineer
considers the time taken in making over and receiving charge to be excessive, the
relieving officer must be treated as if he were on leave or on joining time, etc.,
as the case may be, for as much of the time as may be regarded as excessive.
190 CONTINGENT CHARGES
CHAPTER–19
CONTINGENT CHARGES
19.1. MODES OF OBTAINING CASH
19.1.1. Cash required to disburse contingent charges is obtained from

treasuries directly by bills, i.e., in the same way as cash required for payment of
pay and allowances.
Note.—Under this method, contingent charges do not entire the divisional accounts at
all, though ultimately in the Accountant General’s office they are accounted
for against the appropriations to which they relate.
19.2. GENERAL RULES
19.2.1. The rules in Chapter VI of the Kerala Financial Code, Volume I and
Appendix 4 of the Kerala Financial Code, Volume II apply generally to the Public
Works Department to the extent that they may not be inconsistent either with
the authorised method of obtaining cash for contingent charges or with any of
the rules in this Code.
19.2.2. The expression “Contingent charges” as used in Public Works
Accounts does not include charges which under the rules in Appendix 2 are
classified under some other head of expenditure, e.g., Works, Repairs and Tools
and Plant.
19.3. SPECIAL RULES WHEN BILLS ARE DRAWN
ON TREASURIES
19.3.1. The following special rules are applicable in respect of

contingencies :—
(a) The procedure prescribed in the Kerala Treasury Code, Volume I, for
drawing bills direct on the treasury, for keeping the account of cash obtained on the
bills and for making disbursements applies in toto
(b) Contingent bills may be drawn only by the Divisional Officer or such
other officer as may have been specially authorised by Government, the procedure for
the encashment of the bills being the same as prescribed for establishment bills in
paragraph 18.3.1.
CONTINGENT CHARGES 191
(c) Payments made out of the cash thus drawn are subject to the rules of this
Code, both in regard to the manner of authorising and making payments and to the
forms of vouchers to be obtained in support thereof.
(d) Debits from other departments or Governments for supplies chargeable
to contingencies, intimations of which may be received from the Accountant General,
should be dealt with in the manner indicated in Articles 129 and 130 of the Kerala
Financial Code, Volume I. Debits from other Divisions and Stock and adjustment
transactions arising within the division, should be cleared, by an entry in the regular
accounts, by debit to “the Accountant General’s Office on account of the contingencies
of the division,” the transaction being incorporated in due course in the contingent
bill as laid down in the rule already quoted.
Note.—In accepting invoices of stores and work bills, etc., received from other divisions
and departments, charges pertaining to contingencies should be clearly
specified, and if necessary distinguished from other charges, so that, in cases
where necessary adjustment can be effected in the Accountant General’s Office
this may be done without further reference to the Divisional Office.
19.3.2. The cash obtained for contingent charges should not be mixed up
with balances of cash obtained for other purposes and care should be taken that
cash charges relating to other heads are not brought to account, even temporarily
as contingent charges or vice versa.
192 DIRECTION AND OTHER SPECIAL OFFICERS
CHAPTER–20
DIRECTION AND OTHER SPECIAL OFFICERS
20.1. INTRODUCTORY
20.1.1. The rules in this chapter apply only to the offices of Chief and
Superintending Engineers, Superintendents of Works, and other special officers not
being Divisional Officers or their subordinate officers. These offices are described
as Special Offices in this chapter.
20.1.2. The head of special office is not concerned with the actual execution
of works, with the disbursement of money, or with the provision or custody of any
materials, otherwise than possibly as an officer of control. If however, he is required
at any time to assume an executive charge, the monetary and stores transactions of
such charge should be kept distinct from the transactions of his special office, and
accounted for under the rules applicable to Divisional Officers.
20.2. RECEIPTS
20.2.1. Heads of special offices do not ordinarily realise any departmental

receipts. Any petty amounts received occasionally should be remitted at once to
the treasury in accordance with the procedure prescribed in Rule 92 of Kerala
Treasury Code Volume I.
Note.—For recoveries from the staff See paragraph 20.3.3.
20.3. PAYMENTS
I. INTRODUCTORY
20.3.1. Thus, the monetary transactions of heads of special offices are

practically confined to payments of office expenses and pay and allowances of
themselves and the members of their offices.
These may be divided into two distinct groups :—
(1) Pay and allowances.
(2) Contingent charges.
20.3.2. Cash required to meet these payments is obtained by bills drawn on
treasuries under the rules in the following paragraphs.
DIRECTION AND OTHER SPECIAL OFFICERS 193
II. PAY AND ALLOWANCES
20.3.3. The rules in Chapter 18 for divisional offices apply mutatis mutandis
to special offices. The following rules are peculiar to them :—
(a) The number of separate establishment bills may, however, be reduced
in consultation with the Accountant General, who will specify the sections into which
the bills should be divided.
(b) Recoveries from the establishments of special offices are not subject
to the rules in paragraph 18.4.3. They should as far as possible, be made by deduc-
tion from their bills. When, however, the amounts recovered have to be paid into the
Treasury Savings Bank as security deposits, recoveries should be made in cash at the
time of disbursement of pay and the amounts recovered should be forthwith remitted.
See also Note (2) under paragraph 15.1.1.
III. CONTINGENCIES
20.3.4. The general rules relating to Contingencies are given in Chapter VI

of Volume I and Appendix 4 of Volume II of the Kerala Financial Code.
20.3.5. Charges for new supplies of, and repairs to, articles of the classes
which in the case of executive offices are classified under the head “Tools and Plant”,
are treated as contingent charges, etc., in the case of special offices.
Examples.— Scientific instruments and drawing materials, motor cars etc.
20.3.6. The account procedure prescribed in Chapter 7 for Tools and Plant
of divisional offices need not be observed in special offices in respect of the articles
referred to in paragraph 20.3.5.though these will otherwise be treated as Tools and
Plant for the purposes of the Public Works Department Code. Suitable registers
showing the receipts, disposal and balances of the articles should, however, be
maintained.
Note.—If any articles of this class are transferred to a Divisional Office the fact of the
transfer should forthwith be reported to the Accountant General even though
no adjustment of cost required to be made under rule.
194 ACCOUNTS RETURNS OF SUB-DIVISIONAL OFFICERS
CHAPTER–21
ACCOUNTS RETURNS OF SUB-DIVISIONAL OFFICERS
21.1.1. Subject to such special arrangements as may be authorised by

Government, after consultation with the Accountant General, to apply to cases where
a Sub-divisional Officer is not authorised to make disbursements, the accounts of
Sub-divisional Officers should be kept in accordance with the following rules.
21.1.2. A Sub-divisional Officer maintains the initial account records of cash
and stores as described in Chapters 6 and 7 as well as Works Abstracts, with certain
accompaniments, for each work in progress. All these records are, as a rule, written
up as the transactions take place; Sub-divisional Officer is not, however, required
to consolidate the transactions into a compiled account, this work being done in
the Divisional Office for the entire division.
21.1.3. The initial accounts of cash should be closed on the last working of
the calendar month and immediately the cash balance report, K.P.W. Form 5
prepared under paragraph 6.6.7 should be transmitted to the Divisional Office.
21.1.4. Copies of the Cash Book (supported by vouchers) should be sent to
the Divisional office twice a month or oftener as may be directed by the Divisional
Officer. The copy for the last period of each month should accompany the Cash
Balance report.
Note.—(1) As the accounts of the division in respect of the cash transactions of sub-
divisions are based on the copies of sub-divisional cash books prepared
under this rule, Sub-divisional Officers should satisfy themselves, before
signing them that they are true copies, and correct in all respects. As a
further precaution, the totals of the “Cash” columns on both sides should
be expressed in words in their own hand.
Note.—(2) The Accountant General, in order to eliminate the work of preparing cop-
ies, may permit sub-divisions at the headquarters of a divisional office to
maintain two alternative cash books, one being submitted in original to
the divisional office at the end of the month and the other being used in
the month following.
ACCOUNTS RETURNS OF SUB-DIVISIONAL OFFICERS 195
21.1.5 As soon as the accounts of a month are closed, the returns enumerated
below should be forwarded to the divisional office with a covering list in K.P.W.
Form 85 :—
(a) A Works Abstract accompanied where necessary by K.P.W. Forms 31,
31A or 36 and by K.P.W. Form 50, Transfer Entry Order, in the cases referred to in
paragraph 8.1.7. for each work in progress [vide paragraph 2.1.1. (56)] in connection
with which there was any transaction during the month with a detailed list in K.P.W.
Form 86.
(b) A “Petty Works Requisition and Account”, K.P.W. Form 26 for each
petty work in progress in connection with which there was any transaction during the
month (in original) with a detailed list in K.P.W. Form 86.
(c) Transfer Entry Orders, K.P.W. Form 50 relating to the accounts of the
month, excluding those proposed from time to time—vide paragraph 8.1.4.
21.1.6. Other accounts returns which Sub-divisional Officers should submit
to the Divisional office are the following:—
(a) Monthly—
(i) “Statement of Receipts, Issues and Balances of Road metal”, K.P.W.
Form 15 vide paragraphs 7.4.1 and 7.4.2
(ii) Such statements or reports (vide paragraph 9.5.5.) in connection with
recoveries of rents of buildings and lands as the Divisional Officer
may require the Sub- divisional Officer to prepare.
(iii) Estimate of probable requirements of cash, if prescribed by the Divi-
sional Officer (Note 1 below paragraph 6.2.9).
(b) Occasional—
(i) Reports of verification of stores (including materials at site of works)
immediately after each verification.
(ii) Tools and Plant Ledger—on such dates as may be prescribed by the
Divisional Officer.
196 ACCOUNTS OF DIVISIONAL OFFICERS
CHAPTER–22
ACCOUNTS OF DIVISIONAL OFFICERS
22.1. INTRODUCTORY
22.1.1. The cash and stock accounts of the Divisional Office for a month are
closed on the last working day of the calendar month.
22.1.2. The Transfer Entry Book for a month should be closed as soon as pos-
sible after the expiry of the month, but before this is done, all necessary transfers,
e.g., those relating to the levy of the prescribed percentages for establishment, tools
and plant, supervision charges, etc., should be made.
Note.—The transfer entry relating to the levy of percentages for establishment, tools
and plant and audit and accounts charges is effected on a single order of the
Divisional Officer, recorded in K.P.W. Form 59 the special form prescribed
for the purpose, vide paragraph 22.4.3.
22.1.3. The Cash and Stock Accounts of the entire Division, as also all transfer
transactions, should be scrutinised by the Divisional Accountant before they are
incorporated in the connected registers and schedules and the Monthly Accounts.
Note.—(1) The Divisional Accountant’s responsibility extends also to the examina-
tion of all claims included in bills presented direct at treasuries by the
Divisional Officer, and on behalf of the latter he should also examine the
accounts of the disposal of money obtained on those bills.
Note.—(2) In all matters connected with the personal claims of Government Offic-
ers, the Divisional Accountant is expected to give expert advice and help.
He should see in particular that service books and leave accounts of sub-
ordinates are maintained in accordance with the rules, and that the admis-
sibility of leave applied for by subordinates is verified before their leave
applications are disposed of by the Divisional Officer or forwarded to
higher authority. In all cases of doubt, however, he should advise the
Divisional Officer to consult the Accountant General.
22.2. SCRUTINY OF ACCOUNTS
22.2.1. The Divisional Accountant should examine the accounts returns of

Sub-divisional Officers on receipt to see—
ACCOUNTS OF DIVISIONAL OFFICERS 197
(i) that they have been received in a complete state,
(ii) that all sums receivable are duly realised, and on realisation credited to
the proper head of account as well as to the personal account, if any, of the contractor,
employee or other individual,
(iii) that the charges are covered by sanctions and appropriations and are
supported by complete vouchers setting forth the claims and the acknowledgements
of the payees legally entitled to receive the sums paid,
(iv) that all vouchers and accounts are arithmetically correct,
(v) that they are in all respects properly prepared in accordance with the
rules applicable to each case, and
(vi) that all charges are correctly classified, those which are debitable to the
personal account of a contractor, employee or other individual, or are recoverable
from him under any rule or order, being recorded as such in a prescribed account.
22.2.2. It should be seen in particular that, on the basis of rates sanctioned
by competent authorities, and of facts (as to quantities of work done, supplies made,
etc., or services rendered) certified by authorised officers, the claims admitted for
payment are valid and in order.
Note.—It is not necessary that the Divisional Accountant should check, personally
the arithmetical accuracy of all vouchers and accounts, but he is responsible
that a cent per cent check is exercised efficiently under his supervision.
22.2.3. The Divisional Accountant should exercise a similar check from, day
to day in regard to (i) the transactions recorded direct in the Cash and Stock Accounts
of the Divisional Office, and (ii) Bills and vouchers, of Sub-divisions, which are
submitted to the Divisional Officer for approval before payment is made by the Sub-
divisional Officer. In respect of charges, this examination should be conducted
before the payment is made.
22.2.4 Every payment should be so recorded, and a receipt for the same so
obtained, e.g., See paragraphs 10.2.26.and 10.2.30 that a second claim against
Government on the same account is impossible, and if it represents a refund of a
sum previously received by Government, it should also be seen that the amount paid
is correctly refundable to the payee.
22.2.5 If the Divisional Officer has set a limitation on the drawings of any
Sub-divisional Officer, on a treasury for any month, he should intimate the same to
the Treasury Officer or the Bank. The Divisional Accountant, while examining the
Cash Book of the Sub-divisional Officer, should see that the total amount of cheques
drawn by him during that month does not exceed the prescribed limit; See paragraph
6.2.14.
22.2.6. The Divisional Accountant is responsible that every order or sanction
affecting expenditure to be accounted for in the Monthly Account is noted at once
in a suitable register (or other account) preferably one wherein the expenditure
incurred against it can be watched readily. General sanctions to estimates and
appropriations for works should be noted in the Register of Works Sanction to fixed
charges of a recurring character e.g., those relating to the entertainment of work-
charged establishments should be entered in the Register of Sanctions to Fixed
Charges, K.P.W. Form 55. For sanctions to special payments chargeable to the
accounts of works and other miscellaneous sanctions, K.P.W. Form 56—Register
of Miscellaneous Sanctions, will be found suitable.
Note.—(1) K.P.W. Forms 55 and 56 may be also used in respect of sanctions to
contingent expenditure when this is not brought to account in the Monthly
Accounts but separate pages of these registers should be set aside for this
purpose.
Note.—(2) Sanctions to estimates for works should be entered in the Register of
works and a collective register of all sanctioned estimates be maintained
in such form as may have been prescribed by Government.
22.2.7. If against a single sanction two or more disbursing officers have to
operate simultaneously, the orders of the Divisional Officer should be obtained
imposing a definite limitation on the money transactions of each officer. Similarly,
if disbursing officers of two or more Divisions are concerned, the orders of the
Superintending Engineer or higher authority should be taken. In such cases it may
be advisable to have a separate working estimate, or other sanction, to cover the
transactions of each disbursing officer, and for the purpose of bringing the
expenditure to account, these should be treated, as far as possible, as independent
transactions pertaining to the same group of works or the same project. If this is
not possible special arrangements must be made for the check of the total
expenditure against the sanction.
22.2.8. It is one of the functions of the Divisional Accountant to see that
expenditure which is within the competence of the Divisional Officer to sanction or
regularise is not incurred as a matter of course under the orders of subordinate
disbursing officers without his knowledge. All such items of expenditure should at
once be brought to the notice of the Divisional Officer and his orders obtained and
placed on record. See also paragraph 4.2.4.
22.2.9. The works expenditure should be checked with the estimates to ensure
that the charge incurred are in pursuance of the objects for which the estimate was
intended to provide. In the case of works the expenditure on which is recorded by
sub heads (that is, items of works such as brick work, etc) the Divisional
Accountant is responsible for checking the expenditure on each sub head with the
estimated quantity of work to be done, the sanctioned rate, and the total sanctioned
cost, so that he may bring to notice all deviations from the sanctioned estimate.
22.2.10. When a recovery has been ordered to be made from a contractor or
other person, which cannot be watched through a suspense or other account specially
prescribed for the purpose, the order should be noted at once in a Register of
Recoveries in K.P.W. Form 87 opened specially for the purpose so that the amounts
recovered from time to time (with particulars of the accounts concerned) may be
recorded against it, and prompt compliance with the order watched.
22.2.11. It is permissible to take in reduction of the expenditure on works in
progress, certain receipts and recoveries of expenditure (vide paragraph 9.1.8) e.g.,
sale proceeds of surplus materials and plant acquired specially for any work, or of
materials received from dismantled structures irrespective of whether the estimates
for the works make allowances for such recoveries or not. The amounts of such
receipts are, however, not available for expenditure in excess of that authorised in
the estimate for the work and the Divisional Accountant should see that, without
the orders of competent authority, the gross expenditure authorised is not exceeded,
or surplus receipts realised are not utilised towards additional expenditure. He
should at the same time, watch the receipts with a view to bring to the Divisional
Officer’s notice and obtain that officer’s orders on all marked deviations from the
provision for such credits in the estimates of works.
Note.—(1) In the case of works, the accounts of which are kept by sub heads all such
receipts should be credited to a special sub head in these accounts—vide
paragraph 10.5.12. In the case of other works, the progress of the
realisation of receipts should be watched through the Register of Special
Recoveries (vide paragraph 22.2.10) which should be posted from sanc-
tioned estimates in respect of credits anticipated therein, and from the
accounts in respect of receipts realised from time to time.
Note.—(2) The Divisional Accountant should see also that savings due to abandon-
ment of parts of a work, as evidenced by the quantities of the work ex-
ecuted or otherwise are not utilised towards unauthorised expenditure.
22.2.12. After check every voucher should be enfaced with the word
“Checked” over the dated initials of the Divisional Accountant, as well as of any
clerk who may have applied a preliminary check. Vouchers not submitted to audit
(vide paragraph 22.4.17) should be “cancelled” by means of a perforating or
endorsing stamp and kept carefully to be made available for test audit whenever
demanded by the Accountant General.
Note.—(1) Stamps affixed to vouchers should be so cancelled that they cannot be
used again, and if with this object they are punched through, care should
be taken that the acknowledgement of the payee is not destroyed thereby.
Note.—(2) Vouchers relating to new supplies of tools and plant should be completed
by noting on them the name of the month in the accounts of which the
articles acquired were brought on to K.P.W. Form 12, Tools and Plant
Received Sheet.
22.2.13. The results of the examination of accounts and vouchers received
from Sub-divisional Officers should be intimated to them in all cases in which it is
necessary to obtain further information, accounts, vouchers, certificates, etc. or to
direct them to correct the relevant records of their offices or avoid the recurrence
of any irregularity. The procedure to be observed may be prescribed by the
Divisional Officer. The records connected with the results of the examination should
be retained so as to be available for the Accountant General’s inspection.
22.3. SETTLEMENT OF ACCOUNTS WITH TREASURIES
22.3.1. As soon after the expiry of the month as possible a monthly

settlement should be effected with all treasuries in respect of the transactions of
the entire Division with them.
22.3.2. For payments into treasuries, consolidated receipts should be
prepared in K.P.W. Form 47 for the whole of remittances made to each treasury,
and sent to the Treasury Officers for signature.
22.3.3. For cheques drawn, the pass books, duly completed for the month,
should be obtained from the Treasury Officers with the certificates of issues from
treasuries which are prepared in the form reproduced below and their agreement
with cash books of the Division should be effected in Part II of K.P.W. Form 48
‘Schedule of Monthly Settlement with Treasuries’, which also gives details of the
differences.
“I hereby certify that the total issues made from this treasury on cheques drawn
against the account of Shri…………………………………Officer-in-charge,
……………Division, during………...…………….20………………….amounted to
` ………..(in words )……………………………………………….
22.3.4. The certificate of agreement should be recorded in the pass book

over the signature of the Divisional Officer without recording any details of the
uncashed cheques or other differences.
Note.—(1) The pass book or list of cheques cashed is written up in Form T.R. 79 of the
Kerala Treasury Code, Volume II by a subordinate other than the one who
handles the cash. It should remain in the Divisional Office as an account
record of the office and should be sent to the treasury periodically on
fixed dates (at weekly intervals in the case of the treasury at the Divisional
headquarters) to be written up. The identity and amounts of the cheques
entered as cashed should be examined at the earliest opportunity, the
pass book being initialed (and dated) by the Divisional Accountant in
token of the check.
Note.—(2) K.P.W. Form 48 is required for submission to Accountant General in
original—vide paragraph 22.4.15. The office copy of the details recorded
in it should be maintained in the cash book of the divisional office, the
entries being made, over the signature of the Divisional Officer just after
the closing entries of the month referred to in paragraph 6.6.7.
Note.—(3) If the divisional Officer is placed in account with any treasuries which are
in account with an Accountant General other than his own, a separate
Schedule of Monthly Settlement with Treasuries, K.P.W. Form 48 should
be prepared in respect of the treasuries of each circle of account.
22.3.5. Transactions recorded in the cash books of the Public Works
Department for a month may sometimes be responded to by the treasury in an earlier
or a subsequent month. Differences other than those representing amounts of
uncashed cheques, should be settled expeditiously in consultation with the Treasury
Officer concerned.
22.4. COMPILATION OF ACCOUNTS
I. MONTHLY ACCOUNTS
(A) INTRODUCTORY
22.4.1. Before the actual compilation of the various schedules and schedule
dockets, etc., is undertaken, the Abstract Book, K.P.W. Form 77 may be written up
from the original Cash Books, Summaries of stock Receipts and Indents and the
Transfer Entry Book in accordance with the instructions printed on the standard
form. The Abstract Book will consolidate all the transactions of the Division and
will there by facilitate the location of errors and omissions made in the compilation
of the Monthly Account from the schedules and also serve as an independent check
over the accounts so compiled.
(B) SCHEDULE DOCKETS
22.4.2. As cash vouchers and transfer entry orders, relating to (i) charges
on works other than percentages charged for establishment, tools and plant, etc.
and (ii) other items of expenditure or disbursement for which a contingent bill is
not required, come to hand and are scrutinised, they should be posted into Schedule
Dockets in K.P.W. Form 58 a separate form being used for—
(a) each work to be accounted for in a Schedule of Works Expenditure,
K.P.W. Form 60 or in the Schedule of Deposit Works, K.P.W. Form 61 ;
(b) each manufacture or other item of expenditure debitable to Stock and
to be accounted for in the Schedule of Debits to Stock, K.P.W. Form 67 (vide para-
graph 22.4.8.) ;
(c) each separate class of charges (including refunds of revenue ) for
which a schedule in any other form has to be prepared under the rules in this chapter.
Cash receipts which have to be taken in reduction of expenditure (vide
paragraph 9.1.8.) should be posed as refunds, with brief particulars of the
transactions. At the end of the month the schedule dockets should be completed
in respect of the Stock transactions by posting therein all the Stock debits and
credits of the month as recorded in K.P.W. Form 9 and 8, Summary of Indents and
Summary of Stock Receipts respectively, omitting those brought to account through
the Cash Books and the Transfer Entry Book. The total of the month’s stock
transactions relating to each schedule docket should be entered there in as a single
figure plus or minus according as it is a debit or a credit, and if there are both debits
and credits to be entered the net result only should be posted. Thus in the case of
schedule dockets for works, the figure represents the total issue of materials from
stock to the work and the materials transferred from works to stock will appear as
refunds under the heading “Transfer Entries”. The schedule dockets should then
be totalled and reconciled with the works abstracts in the case of work and with
the schedules concerned in the case of dockets of clause (c) above. All the
vouchers, Transfer Entry Orders, Survey Reports and Sale Accounts which are
required to be submitted to the Accountant General (vide paragraph 22.4.17.) should
then be attached to the respective schedule docket which should be numbered in a
separate series for each month.
Note.—(1) The Accountant General may, however at his discretion permit Divisional
Officers to post the Schedule Dockets at the end of the month from the
Works Abstract as soon as the latter are completed and checked. The
Accountant General may also at his discretion dispense with the
preparation and submission of a Schedule Docket for a work when the
outlay on that work consists entirely of payments on Muster Rolls or
other vouchers not required to be submitted to him. In that case, the
Divisional Accountant must record a certificate in the last column of the
Schedule of works expenditure against the relevant item that the vouchers
in support of the item are such as are not required to be submitted to the
Accountant General under the rules.
Note.—(2) The audit of Schedule Dockets is conducted in the Accountant General’s
office on the assumption that petty vouchers and initial stock accounts
in support of the certified amounts of unvouched and stock charges
have been duly checked by the Divisional Accountant in detail and are
available for test-audit. The Divisional Accountant is, therefore
personally responsible for the accuracy of these amounts as stated in
Schedule Dockets.
Note.—(3) Some of the schedules referred to in clause (c) above include charges for
works supported by a Schedule of Works Expenditure. Such charges
and other transactions relating to works expenditure should be posted in
the Schedule Dockets for the works concerned.
22.4.3. For percentage recoveries made on account of Establishments, Tools
and Plant and Audit and Account charges (vide Appendix 2 of the Kerala Account
Code Volume III, reproduced in Appendix 9 to this Code) a single schedule docket
should be prepared in K.P.W. Form 59 embracing all Government, as well as non-
Government works on which these percentages may be leviable under rule.
Note.—This form serves as the Transfer Entry Order relating to these recoveries (vide
paragraph 22.1.2.) and should therefore be signed by the Divisional Officer.
(C) REGISTERS AND SCHEDULES
22.4.4. (a) All cash and transfer entry transactions of the month, other than
expenditure on works, expenditure on stock and transactions referred to in paragraph
22.4.13. should be posted into one of the schedules or registers named below, to
which the transactions relate:—
(i) Registers of Revenue All in K.P.W. Form 44 (Paragraphs


Realised.  9.5.1. and 9.5.2.)
(ii) Registers of Refunds of  a separate register being maintained
Revenue.  for each major head and in the case of
 works for which separate Capital
 Accounts are kept, one for each separate

 system or project.
(iii) Registers of Receipts and 
Recoveries on Capital 
Account.
(iv) Register of rents of buildings and lands, K.P.W. Form 46 (paragraph
9.5.4) a separate register being maintained for each major head, etc., as
in respect of Nos. (i) to (iii).
(v) Schedule of Debits to 
“Adjusting Account 
between Central and 
State Governments”, and 

(vi) Schedule of Credits to 
“Adjusting Account 
between Central and 
State Governments”.  All in K.P.W.
 Form 73
(vii) Schedule of Debits to 
“Adjusting Account with 
Railways”, and 
(viii) Schedule of Credits to 
“Adjusting Account with


Railways”. 
(ix) Schedule of Debits to 
Posts and Telegraphs”.  All in K.P.W.
 Form 73.
(x) Schedule of Credits to 
Posts and Telegraphs”. 
(xi) Schedule of Debits to 

Defence”. 

(xii) Schedule of Credits to 
Defence”. 
 All in K.P.W.
(xiii) Schedule of Debits to  Form 73.
“Interstate Suspense 
Account” and 
(xiv) Schedule of Credits to


“Interstate Suspense 
Account”
(xv) Schedule of Debits to



Remittances, and 
(xvi) Schedule of Credits to  Both in K.P.W.
Remittances.  Form 72


(xvii) Schedule of Debits to 
Miscellaneous Heads of 
Account, and 
(xviii) Schedule of Credits to
 Both in K.P.W.
 Form 72
Miscellaneous Heads of 
Account. 
(xix) Schedule of transactions adjusted under the head “Cash Settlement
Suspense Account” (Vide paragraph 22.4.10:) K. P.W. Form 71-A
(xx) Suspense Register, K.P.W. Form 62 in respect transactions falling
under “Miscellaneous P.W.Advances” (vide paragraph 14.2.1.)
(xxi) Deposit Register, K.P.W. Form 62 (vide paragraph 15.5.2.)
(xxii) Schedule of Deposit Works, K.P.W. Form 61 (vide paragraph 16.2.2.)
(b) Of these Registers and Schedules Nos. (i) to (iv) and (xix) to (xxii) have
already been described in the paragraphs noted against each.

Note.—(1) A separate schedule should be prepared for each class of receipt for
which a separate register is maintained.
Note.—(2) When under a Major Head of Revenue, there are more than one system of
works, for which separate Capital Accounts are kept, a summary of the
receipts of all systems working upto the totals of the Major Head, should
also be prepared.
(c) Schedules (v) to (xiv) are intended to bring together all transactions
which originate in the division and have to be adjusted by the Accountant General
through the major heads “Adjusting Account between Central and State Governments”,
“Adjusting Account with Railways”, “Adjusting Account with Posts and Telegraphs”,
“Adjusting Account with Defence”, and the suspense head “Interstate Suspense
Account”. The transactions relating to “Interstate Suspense Account” should be
detailed by each Government and those relating to “Adjusting Account with Railways”
should be grouped by each Railway. Similarly the transactions relating to “Adjusting
Account with Posts and Telegraphs” and the “Adjusting Account with Defence”
should be detailed by each Posts & Telegraph and Defence Accounts Officer
respectively.
Note.—Items or groups of items for which details are given in separate schedules,
e.g., Schedule of Receipts (K.P.W. Form 44-A) and Works Expenditure (K.P.W.
Form 60) should be shown as a single item.
(d) Schedules Nos. (xv) and (xvi) are the schedules in which all remittance
account transactions, other than those mentioned in (c) above, are collected, the
entries being grouped under the headings given in K.P.W. Form 72.
(e) Subject to such instructions as may be issued in this behalf by the
Accountant General, Schedule Nos. (xvii) and (xviii) are intended to collect all
disbursements and receipts which do not pertain to any of the other schedules
mentioned in this paragraph or to any of the works or stock expenditure schedules
referred to in paragraphs 22.4.6. to 22.4.13. These transactions are adjusted finally in
the books of Accountant General, and ordinarily affect one of the non-Public Works
major heads of Revenue or expenditure ( e.g., ‘XII Sales tax, XVIII Jails, XLVIII —
Contributions and Recoveries towards Pensions and other Retirement benefits, 20
Audit’ and ‘71-Miscellaneous’) or debt heads of account, (e.g., ‘T—Deposits and
Advances’ and ‘Deposits of Local Funds’ ).
Note.—Recoveries of pensionary charges comprised in the percentage charges levied
for work done invariably appear in the Schedules of Credits to Miscellaneous
Heads of Accounts. Percentage recoveries for audit and accounts appear as
credits or minus debits in the Schedules of Credits or Debits to “Adjusting

Account between Central and State Governments” according as the amounts
are creditable to “LII — Miscellaneous — Fees for Government Audit” or
“20—Audit’’.
22.4.5. At the end of the month, the stock transactions of the month as
recorded in the Summaries of Stock Receipts and Indents, K.P.W. Forms 8 and 9
excluding transactions brought to account through the Cash Book and the Transfer
Entry Book should be incorporated in the schedules referred to in paragraph 22.4.4.
and the schedules should be completed in all other respects e.g., (1) in the Debit
Schedules K.P.W. Form 71 to K.P.W. Form 73 and in the Deposits Register should
be posted, from the detailed schedules concerned (vide paragraphs 22.4.6. and
22.4.7.), the total amount of works expenditure debitable to each head of account,
Government Department, division or office (See also paragraph 15.5.1.) and (2) the
total amount of the cheques drawn during the month should be entered in Credit
Schedule, K.P.W. Form 72 as a single entry for treasuries of each circle of account,
under the subheads “II-Public Works Cheques” or “III-Other Remittances—(b)
Items Adjustable by Public Works Officers” as the case may be, of the head “Public
Works Remittances” (See also Note 3 below paragraph 22.3.4)
(D) SCHEDULE OF WORKS EXPENDITURE

22.4.6.(a) After reconciliation has been effected between the totals of works
abstracts and relevant schedule dockets, a Schedule of Works Expenditure should
be prepared in K.P.W. Form 60 separately for expenditure relating to each of the
following clauses:—
(i) Each major head (or a division thereof shown separately in column 1
of the classification table of Appendix (3) under which expenditure is
recorded.
Note.—This form is not used for manufacture transactions—vide paragraph 22.4.8
(ii) All other Government works
(iii) All non-Government works other than Deposit Works for which
separate schedules are prepared in K.P.W. Form 60—vide
paragraph 16.2.2.
(b) Except as provided in sub para (c) below, only those works on which
expenditure has been incured during the month should be included in the schedule,
the entries being detailed in the order of the prescribed heads of the account,
classification in the case of works under clause (i) and grouped separately for each
Government, department, division, local body or other party concerned, in the case of
works of clauses (ii) and (iii). All works forming part of a single project or system
should in all cases be grouped together.
(c) The schedules pertaining to the accounts for September and March
(supplementary) should include all works, including those relating to which no
transactions have appeared in the accounts of those months and a copy of it should
be sent by the Divisional Officer to the Superintending Engineer to appraise the latter
of the excesses over the Estimates, allotments, etc. They should continue to include
even completed works so long as there is any want of/excess over allotments,
sanctioned estimates, administrative approval or financial sanction which has yet to
be regularised. The schedules pertaining to the accounts for June, September, December
and March (supplementary) should include all works relating to National Highways
and the Central Road Fund to enable the Accountant General, to furnish quarterly
statements of expenditure on such works to the Government of India.
Note.—(1) In the Schedule for works of clause (i) the money column for ‘total
charges of the month’ should be totalled so as to bring out separately the
totals for (1) each minor head, (2) each primary unit of appropriation (if
any) subordinate to a minor head, and (3) each group of works for which
a separate lump sun appropriation has been placed at the disposal of the
Divisional Officer or a controlling authority. The total progressive
expenditure should be entered in coloumn 6 and againist each total should
be given (a) in coloumn 7, the total charges of the year which will be
arrived at by adding the total of the month to the total of the year as given
in column 7 of the previous month's schedule and (b) in column 8 the
amount of allotment placed at the Divisional Officer's disposal. The excess
of the expenditure incurred during the year over the allotment should be
shown below the allotment. Similarly the amount of technically sanctioned
estimate and excess there on should be entered in column 9.
Note.—(2) In the schedules pertaining to works of clauses (ii) and (iii) the entries
relating to ach work should be made separately for “works expenditure”
and “percentage charges” (for establishement, tools and plant, accounts
and audit charges, etc.) one line being used for each of these two charges
and a third for total charges on the work.
22.4.7. Similarily, the Schedule of Deposit Works should be completed in
repect of expenditure transaction which should be taken from the relevant schedule
dockets.

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THE KERALA PUBLIC WORKS ACCOUNT CODE Pages 1-208 PDF

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GOVERNMENT OF KERALA

(Incorporating Amendments up to 2-5-2012)

Official website :www.finance.kerala.gov.in

Thiruvananthapuram DR. V. P. JOY,

3. Watching of actuals .. 5.3.1 5.3.5

3. Tools and Plant—

1. General principles .. 10.1.1 10.1.5

1. A. The Audit and Accounts Order, 1936 .. 225-227

KERALA PUBLIC WORKS ACCOUNT CODE

2.1.1. Unless there be something repugnant in the subject or

(13) Department.—This term when qualified by the prefix “The” is used

(40) Rate of cost and Inclusive rate of cost.—”Rate of

(53) Technical sanction.—This name is given to the order of

(54) Unit of appropriation.—Means the lowest account head for which

Note.—Ordinarily a sub-head of appropriation is the lowest unit for the purpose

(55) Voted expenditure.—Means the expenditure which is subject to the

(56) Work.—The term ‘work’ when by itself, is used in a comprehensive

(57) Works expenditure and works outlay.—These terms are used to

Note.—(ii) When a division undertakes a service on behalf of another division

Note.—(ii) In the case of works undertaken by the Public Works Department

4.1.1. The Divisional Officer, as the primary disbursing officer of the

4.2. DIVISIONAL ACCOUNTANT

4.2.1. To assist Divisional Officers in the discharge of their responsibilities

4.3. ACCOUNTANT GENERAL’S INSPECTIONS

4.4. COMMUNICATION OF SANCTIONS TO

4.4.1. As a general rule every sanctioning authority is responsible that all

other necessary terms and conditions. Duplication of agreements should in no

4.5.1. The results of audit are communicated to the Divisional Officer in

5.1.1. (a) Expenditure, as defined in paragraph 3.1.9. can only be incurred

5.2. GRANTS AND THEIR DISTRIBUTION

5.3.1. It is an important function of the Divisional Officer to keep constant

(g) This review should also be conducted collectively in respect of each

Note.—This register is intended primarily for all transfer transactions, recurring or

6.2. MODES OF OBTAINING CASH FROM TREASURIES

6.2.11. In drawing cheques, drawing officers should be guided by the general

6.3. RECEIPT OF MONEY

(i) ACCOUNTS PROCEDURE

* Addition : G.O. (P) 4243/78/Fin. dated 30-11-1978.

(i) MANNER OF PAYMENT

6.4.6. When money due to a contractor or other creditors is attached by a

Note.—When it is not possible to support a payment by a voucher or by the payee’s

6.4.14. When a bill submitted by a contractor/supplier for supplies made to

6.4.15. To ensure the genuineness of the contractor’s/supplier’s signature in

6.4.16. General instructions regarding the preparation and completion of

6.4.17. When vouchers or accounts exhibit any expenditure from which

6.5. REMITTANCES TO TREASURIES

6.6. CASH ACCOUNTS

(C) RECTIFICATION OF ERRORS

6.6.9. An impress is a standing advance of a fixed sum of money given to an

Note.—(1) A Sub-divisional Officer can authorise temporary reduction and recoup-

6.6.14. When a disbursing officer makes a remittance to a subordinate officer

6.7.1. The Treasury Officers will arrange with the superintendent of

6.7.7. The register of cheque (and receipt) books should be reviewed

7.1.3. All transactions of receipts and issues should be recorded strictly in

7.2.1. The stock of a division (including the District Stores) is sometimes

II. PRICED VOCABULARY OF STORES

7.2.3. In order to ensure accuracy of posting of all transactions and

III. QUANTITY ACCOUNTS

containing the Goods Received Sheets should be numbered serially and a

7.2.12. A chronological record of receipts, issues and the running balance of

IV. VALUE ACCOUNTS

(A) PAYMENT FOR STOCK RECEIVED

7.2.19. An Issue Rate is assigned to each new article as it is brought on